Did Iran succeed in overcoming the sanctions imposed on its oil?
According to Bloomberg, Iranian oil has begun to flood the international market once again, despite the reintroduction of US sanctions in 2018, which poses risks to the fragile global crude market.
According to the agency, most of Iran’s oil is flowing to China, where the world’s largest importer obtains oil from Tehran at discounted prices.
The report suggests that the recovery in oil sales is a sign that Iran, which is still suffering economically from years of isolation, is reaffirming itself after starting to repair relations with regional competitors. It points out that the additional supplies undermine confidence in the oil market, which has already been weakened by sluggish economic growth and cheap Russian shipments.
Iranian crude oil shipments have doubled since last autumn, reaching 1.6 million barrels per day in May, despite ongoing US sanctions, according to Kepler, a company.
Production reached 2.9 million barrels per day, the highest level since late 2018, according to estimates from the International Energy Agency based in Paris.
In addition to China’s increasing appetite, some analysts speculate that the increase in Iranian oil exports has implicitly been allowed by the US government, which is determined to keep gasoline prices under control, according to Bloomberg.
This coincides with other positive signs for Iran, including rapprochement with its regional rival Saudi Arabia in April, efforts to rehabilitate its ally Syrian President Bashar al-Assad, and alleged secret talks to reduce tensions with the White House.
