Iran’s Oil Crisis

By INU Staff

INU - Bijan Namdar Zanganeh, Iran’s Minister of Oil, has said that Tehran is trying its hardest to continue selling oil. During an interview earlier this week, Namdar Zanganeh said that the regime is working “day and night” to find ways in which it will be able to sell its crude oil.

The Trump administration has been taking efforts to get Iran’s exports of oil down to zero – a move that the Iranian regime describes as “psychological warfare”. However, President Trump has explained the move, insisting that it is part of the U.S. tactic to cut the regime off from the large sums that it uses to fund terrorist groups and activities.

Iran has been trying to sell its oil on the black market, but it has not been having much success. The Trump administration has made it very clear that it will not be easing up on the oil sanctions.

It was reported a few days ago that Iran, just this week, had delivered an oil consignment to China. This would be the second consignment that has gone to China now.

The information came from Kpler, an intelligence company that provides transparency solutions in the energy markets. Kpler is able to track the movement of oil tankers and revealed that Iran was able to move more than half a million barrels of crude to different oil tankers every day last month.

The company said that in June, 545,000 barrels of crude oil were transferred, compared to 1,014,000 barrels during the month of May.

In an interview with Radio Farda, Kpler said that 34,000 barrels of Iranian oil had been sold to the West. These are in transit to Turkey. The company explained that the remainder of the oil that was put on tankers in June “is either pinned down in the Iranian territorial waters or in Fujairah port, United Arab Emirates, in the Persian Gulf”.

The Iranian Minister of Oil admitted that the economic sanctions on the country’s oil exports are having a major impact on the country’s economy, but he insisted that the country is still able to export its oil. He did not say how much was being exported, saying that to do so would result in a backlash from the Trump administration.

With regards to the two transfers of oil to China, the Trump administration has said that it is going to carry out an investigation to see what exactly is going on in terms of the oil deliveries.

The Trump administration has said that it intends to continue pressuring the Iranian regime until it changes its behaviour. President Trump has said on a number of occasions that he wants to meet with Iran at the negotiating table so that a more comprehensive deal can be drawn up. However, Iran has scoffed at the idea, probably in the knowledge that Trump is not going to leave any stone unturned when it comes to the Iranian regime’s widespread and wide range of belligerent activities. Activities that the regime’s survival depend upon.