Fall in Oil Prices Due to the Coronavirus, Adds to the Troubles of Iran’s Supreme Leader Khamenei

The sharp decline in oil prices this year has been exacerbated due to the coronavirus outbreak, which has hit Iran especially hard and is expected to worsen its economy.

Following numerous rumors about Iran's 2020-2021 budget, which the regime claimed was least reliant on oil, the 30 percent drop in oil prices in recent days added another Gordian knot to the troubles of the regime in the 2020-2021 budget.

The failure of the OPEC summit with Russia’s lead on 6 March has pushed oil prices down by one-third since then and alarm bells ring for the oil-exporting countries.

So far, oil prices on the world markets have experienced a 30 percent decline, a decline unprecedented since the Gulf War in 1991. Shares in the world's stock markets, from Asia and Europe to the US, have also fallen sharply following the fall in oil prices.

OPEC decided to reduce the daily production of OPEC and allies led by Russia in the fiscal quarter of this year by another 1.5 million barrels a day in order to maintain oil prices, but Russia rejected the offer on 6 March and World oil prices were falling rapidly.

Saudi Arabia responds to Russia's move by increasing its oil output and slashing its oil price. Oil prices which have fallen rapidly in recent weeks due to the coronavirus outbreak, on Monday recorded the largest drop since 1991.

Reuters wrote: “Brent crude futures LCOc1 fell $10.91, or 24.1%, to settle at $34.36 a barrel. The contract fell by as much as 31% earlier in the day to $31.02, its lowest since Feb. 12, 2016.

U.S. West Texas Intermediate (WTI) crude CLc1 fell $10.15, or 24.6%, to settle at $31.13 a barrel. WTI earlier dropped 33% to $27.34, also the lowest since Feb. 12, 2016.

“Monday marked the biggest one-day percentage decline for both benchmarks since Jan. 17, 1991, when oil prices fell a third at the outset of the U.S. Gulf War.”

Saudi Arabia is the largest oil exporter and Russia, the world's second-largest oil producer. OPEC and other producers had agreed to reduce further oil production to prevent further oil prices from falling, but Russia opposed it.

Saudi Arabia plans to increase its oil production to over 10 million barrels in April after the current OPEC-Russia’s reduction deal expires at the end of March.

Saudi Arabia, Russia, and other major oil producers have been competing and increasing their supply of oil in 2014 - 2016 to gain greater market share after the US reduced shale oil production.

Saudi Arabia and Russia are entering a price war that is likely to be limited and tactical, the Eurasia Group said in a note.

But no matter what the outcome of the power struggle over oil prices among other governments and their results and for which they are most profitable, what is triggered by the dramatic fall in oil prices is the escalation of the economic problems of the Iranian regime in 2020.

Following the widespread international sanctions over the nuclear and regional terrorist adventures and human rights abuses, Iran’s regime lost oil as its powerful leverage in its budget calculations.

After the ban on oil exports and a sharp decline in it, the regime was forced to declare that it had closed the year's budget with the least reliance on oil. The budget that went to parliament but under the influence of the Coronavirus outbreak was sent to the Guardian Council through the Integration Commission to obtain approval.

In spite of claims by the regime that oil depreciation is the least in the budget of 2020, but the regime has closed the budget at 484 trillion tomans for 2020 and according to the figures for domestic and foreign sales of oil, oil and gas products has a share of over 40% of the total budget of the regime and if not implemented, the regime will face a huge deficit. But that was the equation before the fall of oil prices that the regime was faced with.

Suddenly the price of oil fell sharply by 30%. Certainly, this price cut is crucial for the Iranian regime, before it is decisive for the first and second-largest oil exporters.

The regime requires $194.6 for every barrel and a daily export of 500000 barrels to prevent a deficit, while Kepler's statistics show that the regime’s daily oil output in January and February was about 250000 barrels.

The regime also includes the exporting of 1 million barrels of oil at a price of $50 in the budget. Brent oil is usually a few dollars more expensive than Iranian oil, so the price of Iranian oil should now be around $32.

A regime plagued by major budget deficits, as the aftermath of the budget deficit of 2019 engulfed the regime and forced it to triple the gasoline prices to find a way out of its budget deficit which leads to the bloody November demonstration.

Now, with the fall in oil prices, despite the claim of "minimal reliance", it seems likely that the consequences on the regime will be crushing.


Read More:

Iran Regime’s Criminal Secrecy of Coronavirus Outbreak Resulted in Growing Fatalities

Nuclear - Terrorism

Rajavi: Iran Regime Breaking Nuclear Deal; Sanctions Needed

The leader of the Iranian opposition said that the Iranian Regime’s announcement on Sunday about limiting its commitment to the 2015 nuclear deal is tantamount to withdrawal from the agreement...
Read more

Iran Is Testing the World’s Will With Its Centrifuges

On December 18, Iranian President Hassan Rouhani during his visit to Malaysia said that his country is running much faster and more advanced model centrifuges to enrich more uranium, all...
Read more

Iran’s Fourth Step in Breaching the Nuclear Deal; Aggression or Inevitable?

Wednesday, November 6, spokesperson for the Atomic Energy Organization of Iran (AEOI) Behrouz Kamalvandi announced that Iran has taken the fourth step in breaching the 2015 nuclear deal, formally known...
Read more

Human Rights

600 Iranian Prisoners Exposed to Coronavirus: Human Rights Defenders

According to obtained reports by the domestic network of the Iranian opposition group, the People’s Mojahedin Organization of Iran (PMOI/MEK), nearly 600 prisoners of the Central Prison of Karaj have...
Read more

Iran Regime Pressuring Protesters’ Families to Accept Blood Money for Their Deaths

The Iranian authorities are pressuring those who lost relatives during the regime’s crackdown on the November 2019 uprising over fuel price rises to accept money and “martyrdom”, rather than have...
Read more

The Iranian Regime Brutally Oppresses Students

Following the latest anti-government protests in Iran in November 2019 and January 2020, the Iranian regime increased its pressure and violence against Iranian students in fear of any upcoming protests. On...
Read more

Middle East

Iran’s Supreme Leader Continues to Meddle in Palestinian Affairs Under the Banner of Quds Day

Every year on the last Friday in the Islamic holy month of Ramadan, under the banner of the Qods Day, the Iranian regime pretends that it is defending the Palestinian people...
Read more

Germany’s Blacklisting of Hezbollah and Protests by Lebanese and Iraqi People, a Prelude to Protests in Iran

Lebanese and Iraqi protesters, who had been protesting Lebanon's Hezbollah and the corrupted government in Iraq, were forced to stop their protests because of the coronavirus pandemic, are returning to...
Read more

Iran’s Regime Panics Over US Military Movements in Iraq

The recent US military actions in Syria and Iraq against the Iranian regime's proxy terrorist groups have caused panic among the heads of the regime’s Revolutionary Guards (IRGC), its officials...
Read more

Analysis & Policy

Iran: There Is No Lesser Evil Anywhere in the Leadership

By INU Staff INU - President Hassan Rouhani won his second term last month. He was up against Ebrahim Raisi (the candidate preferred by Supreme Leader Khamenei). However, Rouhani’s election has...
Read more

Iran: Rouhani Faces Attacks on All Sides

Iranian President Hassan Rouhani is facing mounting pressure at home and abroad which, according to Reuters, may affect his ability to run the country. Reuters notes that Rouhani, who was re-elected...
Read more

Power Struggles Make Iran's Regime Unstable

Although many believed that Supreme Leader Ali Khamenei was preparing conservative cleric Ebrahim Raisi to be his heir by placing him in the presidency, the election results gave Hassan Rouhani...
Read more

Iranian Opposition

Maryam Rajavi: Qalibaf Is Responsible for Killing MEK Members

Iranian opposition leader Maryam Rajavi issued a statement today regarding the regime’s new parliament speaker Mohammad Baqer Qalibaf, saying that he has been directly responsible for the deaths of several members...
Read more

Young Iranians Commemorate MEK Founders

Members of the Iranian Resistance Units have been commemorating the fallen founders of the People's Mojahedin Organization of Iran (PMOI/MEK) this week, on the 48th anniversary of their death. Mohammad Hanifnejad, Saeid Mohsen and Ali...
Read more

Maryam Rajavi’s Ramadan Speech: Part 9

On the eve of the Islamic holy month of Ramadan, Maryam Rajavi, the leader of the Iranian opposition movement sent out a video message to all Iranians about their duty...
Read more


Coronavirus: Iran’s Women Heads of Households Face Double Deprivation

One of the most downtrodden and oppressed sections by the Iranian regime are women heads of households, who, according to a member of the regime’s parliament, number more than 5...
Read more

Iran: Regime’s Officials Sexually Abuse Women Heads of Households

Female heads of households in Iran have been subjected to sexual harassment, violence, and even rape by Tehran municipal officials and employees, according to reports published in Iranian media recently. Over...
Read more

Iraqi Women Roar Against the Mullahs and Their Mercenaries

On February 15, Iraqi women and girls in Dhi Qar, Basra, Babylon, Maysan, and several other provinces held widespread demonstrations against Moqtada al-Sadr, an Iran-backed Shiite cleric. They demonstrated their wrath...
Read more


Iran’s 2020–21 Budget Is a Genuine Dilemma

On December 8, the administration of Iranian President Hassan Rouhani published the 2020-2021 budget bill, triggering a new round of infighting among Iranian officials. Significantly, Rouhani’s allies and opponents agree that...
Read more

New Evidence Emerges of Rampant Corruption in Iran’s Oil and Export Markets

By Edward Carney On Tuesday, IranWire published an article that attached a dramatic figure to the closely-related issues of Iran’s escalating economic crisis and the corruption of entities in both the...
Read more

Iran’s export to Iraq drop by 50%

By INU Staff INU - Iraq has significantly reduced its imports from the Iranian Regime in the past month, according to an economic-focused newspaper published in Tehran. The report notes that part...
Read more


International Reactions to Iran’s Regime Missile Race

While the Iranian people are struggling with the effects of the coronavirus outbreak, which has deeply affected their daily life mostly their insignificant incomes, the regime is playing with missile...
Read more

200,000 Barrels of Oil, and Iran Regime’s Lack of Money

The monthly report of the Organization of Petroleum Exporting Countries (OPEC) on 16 April states that the Iranian regime's crude oil production in March decreased by 52,000 barrels per day...
Read more

Stevenson: IMF Should Not Give Iran $5B to Fight Coronavirus 

The former member of the European Parliament Struan Stevenson has warned the International Monetary Fund against sending Iran $5 billion in emergency aid to fight the coronavirus (COVID-19) pandemic.  Stevenson, the...
Read more


Protests Over Water Shortages in Iran

Residents of the Gheyzanieh district near Ahvaz, Khuzestan Province, held another protest on Monday over severe water shortages that are threatening people’s lives, especially when the heat is excruciating and...
Read more

Iran, the Killings in the 2019 November Protests and the Consequences for the Regime

One of the issues that Iran’s regime is facing with it daily is the fate and the numbers of the people who were killed in the November 2019 protests. The regime...
Read more

Khamenei Address Basij Expressing Fear of Anti-regime Uprising in Iran

Iranian Supreme Leader Ali Khamenei expressed his fears over looming anti-government protests by young people during a video conference meeting with members of paramilitary Basij forces, who posed as students.  During the annual...
Read more

Latest INU tweet


Latest News

Estimating Support for the...

US Raises Concerns After 1000...

NCRI-US Reveals New Details...

Ayatollah ‌BBC Repeats Lies...

Iran: Protesters handed harsh...

Rubio asks for Justice...