Iran’s oil revenue soars 580% as crude prices soar

Iran’s revenue from oil and condensate exports jumped 580 percent in the first four months of the current Iranian year which begins March 21, Iran’s Economic Affairs and Finance Minister said on Tuesday. , Seyyed Ehsan Khandouzi.

Between March 21 and July 21, international crude oil prices largely held above $100 a barrel after the Russian invasion of Ukraine and sanctions on Russian oil exports disrupted trade flows global.

“Due to the increase in oil exports and the currency conversion rate of our new budget, we have seen a 580% increase in treasury revenue from the export of oil and condensate in the first four month of this year,” Iran’s finance minister said. said by local news agency IRNA.

Overall, Iran’s budget revenue jumped 48% in March-July compared to the same period of 2021, while government spending increased by 16%, the minister added.

“The government focused on this issue to be able to earn a more stable income. This means that the compensation of the budget deficit was on the agenda of the government and it was achieved in the first 4 months of this year,” the minister said.

Iran’s 12-month inflation rate hit 40% in July, according to Iranian statistics last week. Property prices have soared since the government removed some subsidies earlier this year.

Despite the diplomatic deadlock over the nuclear deal, Iran is preparing to join the global oil market. The country has boosted its production, as well as its exports to its main market, China. If a new deal is reached between Iran and world powers, the flow of Iranian oil abroad could increase by 500,000 bpd to 1 million bpd, analysts say.

China has been the main outlet for Iranian crude oil exports since the United States reimposed sanctions on the Islamic Republic’s oil industry in 2018, when then-President Donald Trump withdrew the United States. States of the so-called Iran nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA).

By Tsvetana Paraskova for Oilprice.com

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