Iranian Economy Collapse: U.S. Sanctions on Iran Taking Economic Toll…

  • On Thursday, special exemptions ended for countries who continue to purchase Iranian oil. The Trump administration reemployed sanctions against Iran last year after President Trump withdrew from a nuclear accord.
  • The biggest purchasers of Iranian oil — Japan, China, Taiwan, India, South Korea, Italy, Turkey and Greece — were previously given 6-month waivers by the U.S. to continue to buy Iranian oil. Since the grace period is up, they could face penalties if they continue to buy.
  • Iranian leaders have stated that they can survive the sanctions, but the country’s currency has hit record lows.
  • Previous sanctions resulted in the country slipping into a deep recession when Iran wouldn’t bow to international pressure to give up its nuclear weapons.
  • When sanctions were reinstated last year by the U.S., foreign investment in Iran dropped dramatically and affected oil exports.
  • In 2018, Iran’s GDP decreased by 3.9%. The International Monetary Fund expects the country’s economy to decrease by 6% in 2019.
  • In early 2018, Iran exported about 3.8 million barrels of oil per day, but that figure dropped to 1.1 million per day this year.

Reference Links

  • BBC: Six charts that show how hard US sanctions have hit Iran READ
  • Wall Street Journal: Tighter Iranian Oil Sanctions Set Stage for U.S.-Saudi Showdown READ
  • TRT World: What next for Iran oil trade as US sanctions kick in? READ

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