Iran’s Economy Sunk By US Sanctions

The new Iranian year has started badly for Tehran. Floods have caused billions of dollars’ worth of damage, and now further US restrictions on its essential oil sales will take their toll on its struggling economy.

Iran’s finances are heading from bad to worse with the announcement this week that the Trump administration will end on 2 May the temporary sanctions’ waivers granted to eight countries to import Iranian crude oil with the aim of reducing exports “to zero” ( MEES, 26 April ). By further ratcheting up pressure on Iran’s key source of export revenues, state finances are going to be squeezed more than ever before.

Even before the latest decision to terminate the waivers, the struggling Iranian economy was further hit by massive floods which devastated a number of regions in northern and southwestern Iran in late March and early April. A terrible start to the new Iranian year, this prompted President Hassan Rohani to seek a $2bn financial aid package from the sovereign wealth fund to bring about emergency relief to the flood-stricken areas. (CONTINUED - 705 WORDS)