The European Union imposed an embargo on Iranian oil on July 1 as the Western powers sought to compel Tehran to negotiate over its nuclear ambitions. In addition, the US and its allies have targeted Iran for a range of financial sanctions, designed to make it harder for the country to insure its tankers or receive payment for oil sales.
Mounting evidence suggests that these measures are helping to cripple the Iranian economy. The International Energy Agency released its monthly oil market report showing that Iranian exports averaged 1.3 million barrels per day in October, compared with the average of 2.3 million per day last year.
That fall of represents a daily loss of revenue of $109 million at current market prices. In reality, the actual loss could be greater because Iran’s remaining exports are happening at a discount as Tehran struggles to keep its buyers.
On a low estimate, Iran’s losses are probably running over $3 billion per month – or $33 billion so far this year. That represents almost 30 per cent of the Iranian government’s total budget of $113 billion in 2012/13.
