TEHRAN -- Iran’s income from oil and condensates exports is 580% higher in the first four months of the Iranian year (March 21 to July 21) compared with the same period a year ago, the Iranian economy minister said on Tuesday.
“Due to the increase in oil exports and our new budget’s currency conversion rate, we saw a 580% increase in the treasury’s income from the export of oil and condensate in the first four months of this year,” Economy Minister Ehsan Khandouzi told a news conference.
Oil prices have nearly doubled from a year ago because of the war in Ukraine and the global post-pandemic economic recovery.
The Iranian government says it has found ways to repatriate funds to its treasury from earlier energy exports and says it has increased oil exports despite U.S. sanctions re-imposed in 2018 after former U.S. President Donald Trump withdrew from an agreement to restrain Iran’s nuclear program.
Talks to revive the 2015 accord, and allow U.S. sanctions to be removed, have been on hold since March, chiefly over Washington’s refusal to undo its past wrongs.
Overall, Iran’s budget income jumped by 48% in March-July compared to the same period of 2021, while government expenditures rose by 16%, the minister added.
“The government was focused on this issue to be able to earn a more stable income. This means that compensating the budget deficit was on the agenda of the government and it was realized in the first 4 months of this year,” Khandouzi said.
Iran’s 12-month inflation rate hit 40% in July, Iranian statistics showed last week. Prices of goods have soared since the government removed some subsidies earlier this year.
Despite the diplomatic impasse over the nuclear deal, Iran has been preparing to rejoin the global oil market. The country has boosted production, as well as exports to its main market, China. If a new deal is reached between Iran and the world powers, the flow of Iranian oil abroad could increase by between 500,000 bpd and 1 million bpd, according to analysts.
China has been the main outlet for Iranian crude oil exports since the U.S. re-imposed sanctions on the Islamic Republic’s oil industry in 2018.