Iran Oil Exports Collapse 85 Percent as US Sanctions Push Crude Towards $100

• Brent crude climbed towards $100 per barrel as US sanctions and disruptions to Iranian oil exports tightened global supply concerns.

• Iranian crude loadings have plunged to about 260,000 barrels per day from 1.7 million bpd a year ago, according to Kpler.

• Iran’s rial has lost more than half its value in a year, while inflation has reached 69.9 per cent as imports and access to foreign currency come under pressure.

September 04, () — US sanctions and restrictions on Iranian oil exports are deepening the country’s economic crisis, while renewed tensions in the Middle East have pushed crude prices towards $100 per barrel.

Brent crude, the international benchmark, rose to about $97 per barrel on Thursday before retreating to around $95.50, according to Oilprice.com, as concerns over disruptions to Iranian supplies intensified.

The price increase came as Washington stepped up efforts to restrict Iran’s access to international financing and prevent Tehran from circumventing sanctions, Reuters reported.

Iranian oil exports collapse

The sanctions are having a major impact on Iran’s oil industry, with crude loadings falling sharply.

Commodity analytics firm Kpler estimates that Iranian crude loadings have dropped to about 260,000 barrels per day this month, compared with around 1.7 million bpd a year earlier.

The decline threatens Tehran’s main source of foreign currency at a time when the country is already struggling to finance imports and maintain trade.

Three senior Iranian sources told Reuters that the latest US measures were becoming increasingly difficult for the government to withstand, with foreign-exchange channels shrinking and access to essential imports becoming more challenging.

The pressure is also affecting Iran’s sanctions-evasion networks, including front companies, unregistered tankers and smuggling operations, which have become increasingly expensive to maintain.

Currency, inflation worsen

Iran’s economic crisis has been compounded by a sharp depreciation of the rial and accelerating inflation.

The currency has fallen from about one million rials to the dollar a year ago to more than 2.2 million rials currently.

Official figures put Iran’s 12-month average inflation at 69.9 per cent, while food, beverages and tobacco prices have increased at nearly twice that rate.

Iranian President Masoud Pezeshkian has also said the country’s trade has declined by between 25 and 35 per cent, with imports suffering a larger decline than exports.

The United Arab Emirates has further disrupted a key commercial channel, announcing on August 19 that commercial exchanges and financial dealings with Tehran had been suspended until further notice.

Fuel shortages add pressure

Iran’s domestic fuel position is also deteriorating despite the country being a major oil producer.

A senior Iranian source told Reuters that the country has only about two months of petrol supply and still needs to import fuel because of limited refining capacity.

The economic squeeze is increasingly affecting households, with average monthly salaries estimated at about $125 compared with basic household spending requirements of roughly $450, according to official data.

The worsening economic conditions come as fighting between Iran and the United States intensifies, raising concerns about further disruption to crude production, exports and shipping through the Strait of Hormuz.

While some energy continues to move through the strategic waterway, prolonged disruption could tighten global oil supplies further and keep prices elevated.

For Iran, however, the combination of sanctions, collapsing oil exports, currency weakness and inflation is placing growing pressure on an economy already struggling to maintain access to foreign exchange and essential goods.