• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 2 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 18 mins China's Blueprint For Global Power
  • 5 hours IMO 2020:
  • 7 hours World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 14 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 11 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 15 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 15 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 7 hours Deepwater GOM Project Claims Industry First
  • 17 hours Why don't the other GOP candidates get mention?
  • 17 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 16 hours PETROLEUM for humanity 
Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

U.S. Sinks Nails in Iranian Economic Coffin

Oil priced at around $100 per barrel means Iran for May was out around $300 million in oil revenue because of Western economic sanctions. A U.S. Treasury Department official said sanctions are taking a slice out of oil revenue for the Islamic republic after years of pressure and May exports of oil from Iran may be at record lows. Sanctions are meant to starve Iran of the finances it needs to support its nuclear research. Following a damning report from the IAEA, the country may find itself with its back against the wall unless it changes course and fast.

Crude oil shipments from Iran declined in May to around 700,000 barrels per day, which may be the lowest level in decades. Assuming a price per barrel of around $100, Iran lost more than $300 million in oil export revenue from April to May. April exports were already hit when Japan announced it almost completely stopped purchasing Iranian crude.

Related article: Is Iraq Capable of Becoming the Largest Oil Producer in the World

Economic sanctions are used by Iran's adversaries to cut off the funding that may be financing Iran's nuclear program. The Iranian government maintains the right to peaceful nuclear research as a party to the Nuclear Non-Proliferation Treaty. The International Atomic Energy Agency said this week that, unless Iran allows effective verification of its intent, it's not possible to resolve outstanding issues "including those relating to possible military dimensions to Iran's nuclear program."

U.S. Under Secretary for Terrorism and Financial Intelligence David Cohen told the Senate Committee on Banking, Housing and Urban Affairs the "scope, intensity, and impact" of sanctions on Iran have expanded. This week alone, the U.S. government targeted Iran's currency, the rial, and the foreign assets of its leaders. Sanctions, said Cohen, have inflected significant damage on the Iranian regime.  He said laws restricting Iranian oil sales have cost Iran billions of dollars a month since last year. Coupled with sanctions from the European Union, Cohen said crude oil exports from Iran were down more than 1 million barrels per day year-on-year.

"U.S. and EU sanctions on Iran's petroleum sector have been particularly powerful," he testified.

Related article: Iran's New President Won’t Bring Anything New

The International Monetary Fund said it expects the Iranian gross domestic product to contract by 1.3 percent in 2013, highlighting the country's overall economic woes. The eight candidates approved to run in a presidential election June 14 have put economic policies at the top of their agenda. Iranian presidential candidate and top nuclear negotiator Saeed Jalili said this week that Iran "will not retreat one iota" from the right to pursue nuclear technology, however. According to Cohen, that amounts to nothing more than another nail in the coffin for the Iranian regime.

"The (Obama) administration's campaign to target Iran's proliferation networks, support for terrorism, sanctions evasion, abuse of human rights, and complicit financial institutions is without precedent," he said. "It will only continue and grow more robust as Iran's failure to meet its international obligations persists."

By. Daniel J. Graeber of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Ken on June 07 2013 said:
    We all know this is just US hegemony.
  • vikas varma on July 28 2013 said:
    this is not US hegemony.this is US economic stratigy to help its middle east allies saudi arebia and iraq to increase their crude export and also keep the price of world crude oil at such level that their own produce shale oil will remain economically viable.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play