The news came from Iran’s Minister of Economy and Finance Seyyed Ehsan Khandouzi.
The uncertainty in world markets due to the incursion of Russian troops into Ukraine, coupled with inflationary pressures everywhere in the world, is causing high energy and fuel prices. Recently, international oil prices have mostly stayed above $100.
IRNA reports that the minister made the following comments at a press conference.
“Due to the increase in oil exports and our new budget’s currency conversion rate, we saw a 580% increase in the treasury’s income from the export of oil and condensate in the first four months of this year.”
Overall, Iran’s budget revenues jumped 48% in the March-July period compared to the same period in 2021, while state spending rose 16%.
“The government was focused on this issue to be able to earn a more stable income. This means that compensating the budget deficit was on the agenda of the government and it was realized in the first 4 months of this year.”
Inflation is a problem in Iran
According to Iranian statistics, inflation is still rising and in July has already reached 40.5%. Thus, there is a high price rise in the country, which adversely affects the mood of society. Especially since, to increase economic stability, the Iranian government abolished some subsidies earlier this year.
Economically, Iran is in a state of uncertainty. On the one hand, politicians in the country are still talking about the nuclear industry, which will be marked by the withdrawal of the United States from the Iran nuclear deal. On the other hand, according to this new information, Iran is succeeding in increasing its profits from oil exports. The biggest customer is China, which is currently importing discounted oil in bulk from Russia.
Speaking of Russia, it has concluded agreements on Gazprom’s investments in Iran. You can read more in our recent article.
If a new deal is struck between Iran and world powers, analysts say the flow of Iranian oil abroad could increase by 500,000 to 1 million barrels a day. This could significantly help the world market and also boost Iran economically to a large extent.