Despite a robust sanctions regime by the U.S., Iranian officials have still budgeted for 25% of the nation’s oil to be exported. which will be likely necessary for the economic stability of the country, nevertheless will prove difficult after the Trump administration stopped granting sanctions waivers which allow several countries to import limited supplies through Iran.
Oil analysts agree which Iran will likely go through back channels to find buyers, although the cost for which oil could be at a steep discount. Data through Genscape, a company which looks at oil production levels of different countries has shown which Iran has, in fact, upped its production inside last two months, although no orders have been made for the month of May.
Iran had been shipping about one to three million barrels a month to Syria, TankerTrackers says. nevertheless due to increased pressure through the U.S., those shipments virtually came to a halt towards the end of 2018, impacting Iran’s fragile economy along with creating a fuel shortage in Syria, which imports nearly 75% of its crude.
Through a long-standing relationship with Syria, Iran had previously extended a line of credit to Damascus for oil shipments dating back to 2013. However, which line of credit had been halted since October 2018 ahead of U.S. sanctions.