The aim of this study is to identify the value-creating dimensions and drivers embedded in sustainable business models based on the circular economy in Iran’s oil industry. In terms of purpose, this research is applied, and in terms of implementation, it is qualitative in nature and follows an exploratory strategy. The statistical population comprised 12 managers, experts, and specialists familiar with the fields of circular economy, sustainable business models, and Iran’s oil industry, and the participants were selected through purposive sampling. Data were collected through semi-structured interviews. Thematic analysis and MAXQDA software were employed for data analysis.The findings revealed 105 basic themes, 21 organizing themes, and 7 overarching themes. The overarching themes include economic value creation, environmental value creation, social and organizational value creation, sustainable business model, circular economy drivers, implementation challenges, and the requirements for transitioning toward sustainable value creation. The results indicate that increasing resource productivity, reducing life-cycle costs, recycling and reusing materials, developing circular services, innovating business models, expanding inter-organizational collaboration, and leveraging digital technologies are among the most important factors contributing to sustainable value creation in the oil industry. By contrast, infrastructural limitations, cultural challenges, high initial costs, and the absence of supportive policies are among the main barriers to implementing the circular economy in this industry.Based on the findings, moving toward sustainable business models grounded in the circular economy can enhance the sustainability and competitiveness of Iran’s oil industry by improving resource productivity, reducing environmental impacts, and strengthening corporate social responsibility.