• 13 hours Three Stocks To Watch Ahead Of Earnings Season
  • 17 hours Markets Flat As Bulls And Bears Battle It Out
  • 19 hours The Mining Industry Still Has a Human Rights Problem
  • 2 days 5 Billionaires Booted From Their Own Companies
  • 2 days Can Toyota's Hydrogen Car Take On Tesla?
  • 3 days Why Universal Basic Income Won't Work
  • 4 days Is This The Real Golden State?
  • 4 days Blockchain Firm Pushes For Ethical Mining
  • 5 days America’s Working Class Are Footing All The Bills
  • 5 days Market Volatility Sends Investors Scrambling Into This Asset Class
  • 5 days How Much Energy Would It Take To Power The Death Star?
  • 6 days A Tweet About Hong Kong Could Cost The NBA $4 Billion
  • 6 days World's Largest Miner Doubles Down On Renewables
  • 6 days Nasdaq Cracks Down On Small Chinese IPOs
  • 7 days Is There Any Reason To Be Bullish About Netflix?
  • 7 days Precious Metals See Record Inflows As Investors Hedge Against Teetering Economy
  • 7 days NYU Professor: Tesla Could Lose 80% Of Its Value
  • 8 days Uber To Offer On Demand Employment
  • 8 days SoftBank Reeling After Questionable WeWork Investment
  • 8 days Opportunity Arises In The Democratic Republic Of Congo
America’s Working Class Are Footing All The Bills

America’s Working Class Are Footing All The Bills

Two economists, from the University…

Can Toyota's Hydrogen Car Take On Tesla?

Can Toyota's Hydrogen Car Take On Tesla?

Japan’s Toyota Motor Corp released…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. News
  3. Breaking News

U.S. Sanctions Are Wreaking Havoc On Iran's Economy

Sanctions

Iran’s economy contracted by 4.9 percent in the 2018-2019 year ended in March, slipping further into recession as diminishing oil exports due to the U.S. sanctions are depriving the Islamic Republic of its economic lifeline—oil revenues.

The 4.9-percent contraction between March 2018 and March 2019, reported by the Statistical Center of Iran cited by VOA, could worsen even further as the U.S. removed all sanction waivers for Iranian oil buyers as of May 2.

After the U.S. ended all sanction waivers for Iran’s oil customers on May 2, Iran’s crude oil exports dropped significantly in May this year compared to April and plunged by more than 2 million bpd off their 2.5-million-bpd peak in April 2018, just before the U.S. withdrew from the Iran nuclear deal and moved to re-impose sanctions on Iran’s oil industry.

Iran is considering revising its financial and budgetary policies to remove oil income from them as a means to “counter Washington’s economic sanctions that constitute a case of terrorism,” Iran’s Foreign Minister Mohammad Javad Zarif said last week.

Oil income is an essential part of Iran’s state revenues and the plunging crude exports are crippling the economy.

According to the International Monetary Fund (IMF), Iran’s economy is expected to shrink by 6 percent this year, while the annual inflation will spike to 37.2 percent.   Related: Beijing Backlash: Stocks Slammed, Gold Boosted

A World Bank report from earlier this month showed that Iran’s annual inflation had risen sharply from about 10 percent in the middle of 2018 to about 52 percent in April 2019, “contributed by a depreciation of the rial in the parallel market of more than two-fold compared to levels prior to the announcement of U.S. sanctions in April 2018.”

The World Bank sees Iran’s gross domestic product (GDP) dropping by 4.5 percent this year after an estimated fall of 1.9 percent in 2018.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From conil.me:

Back to homepage

Leave a comment

Leave a comment