The Economy of Iran
Maximum Pressure After 2018
After the US left the nuclear deal in 2018 and reimposed sanctions, Iran's oil exports and currency fell sharply, though it found ways to sell oil, largely to China.
Sanctions returned, tougher.
US exit
The US withdrew in May 2018 and re-imposed sanctions including on oil.
Currency
The rial fell by a huge margin over the following years.
Workarounds
Iran sold oil through discounted deals, using a fleet of tankers and Chinese buyers.
Impact
Living standards fell and inflation was very high.
A discount cargo
Iranian oil finds buyers in China at prices below the market.
Assuming sanctions completely stop trade
Workarounds reduce but do not eliminate it.
Key takeaways
- The US left the JCPOA in 2018.
- The rial collapsed.
- Oil is sold at discounts.
- Households suffer.
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