It is well documented that the US sanctions against Iran have done enormous damage to the nation’s civilian economy, with food prices soaring and the currency failing. But what about the putative target of the sanctions, Iran’s oil production?
Turns out, the sanctions are doing exactly nothing so far, with Iran’s oil output in February exactly the same as its production in January, 3.5 million barrels per day.
Industry experts expressed surprise at the lack of effect, saying they were positive that the sanctions were “having an impact” even if they weren’t affecting the bottom line, and pointing to increases in Iran’s storage, pending new customers.
And while those same experts are predicting that the sanctions will start doing something in the next couple of months, Iran seems to be having good luck selling the excess oil to China and India. The use of barter instead of US dollars and offers of discounts for long term contracts may not be ideal for Iran’s government, but there still seems to be plenty of appetite for their oil abroad.
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