Water scarcity is a growing global issue, especially in arid regions like Iran. Global food trade complicates water and food resource management by moving virtual water (the water used to produce goods) between regions. This study uses circular economy principles and life cycle assessment (LCA) to analyze virtual water use across income groups in Iran, focusing on food consumption. This study divided households into three groups: economically vulnerable, middle-class, and affluent. Lower-income households are more water-efficient, using 3.33 L per USD, compared with 0.81 L for middle-class and 0.41 L for affluent households. The per capita virtual water consumption was 3916.7 L for vulnerable groups, 3481.6 L for middle-class, and 3418 L for affluent groups—all higher than the global average. This is because they rely on low-water foods like bread and legumes. Additionally, affluent households consume 80% more red meat, which has a high water footprint. The study calls for policies to promote water-conscious diets, optimize virtual water trade, and integrate sustainability into LCA frameworks. Aligning resource management with circular economy goals can help Iran improve water security and sustainable development.

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