Mounting sanctions squeeze Iranian exports

The country’s oil sector and economy will continue to feel the suffocating effects of US sanctions

In November 2018, the US withdrew from the landmark Iranian nuclear accord and re-imposed economic sanctions. Since April, the US government has aimed to reduce Iranian oil exports to close to zero, ending sanction waivers that were previously given to China, India, Japan, South Korea and Turkey. As a result, exports to Iran’s top four buyers have dropped significantly. The exact level of Iran’s oil exports has become increasingly opaque. Iranian oil tankers have been conducting tanker-to-tanker oil transfers and turning off their navigation systems to continue sanctions-busting shipments. The country’s oil revenue, while squeezed, is most likely above the officially recorded level.  Governm