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So when I search for best flights from Vancouver to Tehran, I get prices around 1150 CAD for a round trip via Lufthansa which has a stop in either Frankfurt or Munich. Now if I search for the flights from Vancouver to Frankfurt or Munich, the prices don't really change.

That is also true about other Airliners like AirFrance. Surprisingly enough, the cost of a connected flight from Vancouver to Tehran via Air Canada plus Air France which stops in Calgary and then Paris is equal to a single flight from Calgary to Paris!

These are based on my searches on different times of the year, so they're not limited to a specific season.

Why does it happen? Am I missing something?

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    Supply and demand?
    – phoog
    Aug 25 '16 at 5:00