Market Overview

Iran Losing $3B a Month Due to Oil Sanctions

Originally published on Fox Business

Iran will see its July oil exports more than halved from regular levels seen last year because tough new Western sanctions are stifling flows and costing Tehran more than $3 billion in lost revenue per month.

Declining oil exports, the lifeblood of the Iranian economy, will increase Tehran's struggle to contain spiraling inflation and mounting unemployment amid its standoff with the West over its nuclear program.

"They will eventually have to close down production. Right now it seems very unlikely that they will get any relief from sanctions any time soon," said an executive with a Western oil firm with a long history of dealing with Iran.

Exports in July will be a maximum of 1.1 million barrels per day (bpd), said an industry source familiar with Iran's monthly shipping plans and who declined to be named due to the sensitivity of the matter.

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