With the collapse of Iranian oil export revenues as US sanctions exert “maximum pressure” on the economy – key buyer China took just 185,000 b/d for August (MEES, 27 September) – Tehran has no hope of raising the IR5,200trn in revenue needed to nominally balance its 2019-20 budget.

As with previous years the budget is nominally balanced. But local economists reckon that the country is on track for a deficit of between IR1,000trn and IR1,500trn ($8.7bn - $13bn at the current market exchange rate of $1=IR115,000). (CONTINUED - 770 WORDS)