Iran faces rising pressure amid oil revenue decline
Iran is facing a worsening economic crisis due to declining oil revenues, as its oil exports have sharply decreased following the U.S. naval blockade that began in mid-July. Exported oil quantities have fallen significantly, from approximately 90 million barrels to around 29 million barrels currently, with the possibility of running out of stock by next month. This contraction in exports has led to the Iranian rial losing more than 15% of its value since the start of the U.S. administration’s economic pressure campaign, with inflation exceeding 80% year-on-year. Economic contractions of 5.4% have been forecasted since the 1980s. Additionally, the decline in oil revenues threatens the financing of the state budget and military activities, while increasing import costs. This situation is placing additional pressure on Iranian factories and households and may push Tehran toward geopolitical escalation to confront the economic decline.
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