• العربية
  • فارسی
Brand
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Theme
  • Language
    • العربية
    • فارسی
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
All rights reserved for Volant Media UK Limited
volant media logo

Iran's Oil Shipments Halved In May, Report Says

Mardo Soghom
Mardo Soghom

Iran International

Jun 13, 2022, 09:48 GMT+1Updated: 17:33 GMT+1
Iranian oil being loaded in the Persian Gulf on March 22, 2022
Iranian oil being loaded in the Persian Gulf on March 22, 2022

Iran’s oil shipments in May dropped by 50 percent, in a sign that Moscow is selling more oil to China and taking Tehran’s market share, a report on Monday said.

The data and analytics firm Kpler was quoted by Prague-based, US-financed Persian language Radio Farda as saying that Iran’s illicit shipments of crude mainly to Asian markets dropped to around 400,000 barrels per day (bpd) in May.

The shipments were estimated to have been 908,000 bpd in March and 820,000 in April, as Iran claimed it is selling more than a million bpd in recent months.

When the United States imposed full oil export sanctions on Iran in May 2019, exports dropped from more than 2 million barrels a day in 2016-2017 to around 250,000. China was the main buyer of Iranian crude in this period.

Toward the end of 2020, as it became clear that then-President-elect Joe Biden was determined to revive the 2015 nuclear agreement (JCPOA) with Iran abandoned by his predecessor in 2018, Iranian crude exports began to increase. China might have calculated that the risk of US retaliation decreased with the prospects of talks to restore the nuclear deal.

Exports gradually increased in 2021 as the United States engaged in indirect nuclear talks in Vienna. It reached new highs in early 2022 before the Russian invasion of Ukraine and sanctions on Moscow by many countries. Since then, Russia has apparently turned to China to sell its crude which happens to be Iran’s main oil customer.

In May, Reuters reported that about 20 tankers carrying around 40 million barrels of Iranian oil were waiting near Singapore to sell their cargos. As oil market monitoring firms have reported in the past Iranians oil is sold most probably to middlemen who then transfer the crude to Chinese ‘teapot’ small refineries.

Kpler told Radio Farda that the quantity of Iran’s unsold oil has not changed much, probably because shipments have declined.

Iran has denied that Russia is taking its market share, but $30 barrel reported discounts by Russia are apparently much more than Iran offers to customers willing to take a risk and buy its sanctioned crude.

The hardliner government of President Ebrahim Raisi prides itself for having “defeated US sanctions” and increased oil exports, as it tries to calm a volatile economic environment at home. The danger of three-digit inflation in Iran and the fall of its currency to a historic low over the weekend have led to angry protests on the streets.

The reported fall in exports in May can deal a new blow to Iran’s hard-pressed economy and further destabilize the political scene.

The year-long nuclear negotiations remain in deadlock, as Tehran demands its revolutionary Guard be removed from the US list of Foreign Terrorist Organizations (FTO).

The US has signaled that if talks make no progress and Iran continues to expand its nuclear program, it may decide to tighten the screws on Tehran, which may mean a more rigorous enforcement of existing sanctions.

Most Viewed

Iran negotiators ordered to return after internal rift over Islamabad talks
1
EXCLUSIVE

Iran negotiators ordered to return after internal rift over Islamabad talks

2
ANALYSIS

US blockade enters murky phase as tankers spoof signals and buyers hesitate

3
ANALYSIS

Why the $100 billion Hormuz toll revenue is a myth

4

US tightens financial squeeze on Iran, warns banks over oil money flows

5
ANALYSIS

US blockade targets Iran oil boom amid regional disruption

Banner
Banner

Spotlight

  • Hardliners push Hormuz ‘red line’ as US blockade tests Iran’s leverage
    INSIGHT

    Hardliners push Hormuz ‘red line’ as US blockade tests Iran’s leverage

  • Ideology may be fading in Iran, but not in Kashmir's ‘Mini Iran'
    INSIGHT

    Ideology may be fading in Iran, but not in Kashmir's ‘Mini Iran'

  • War damage amounts to $3,000 per Iranian, with blockade set to add to losses
    INSIGHT

    War damage amounts to $3,000 per Iranian, with blockade set to add to losses

  • Why the $100 billion Hormuz toll revenue is a myth
    ANALYSIS

    Why the $100 billion Hormuz toll revenue is a myth

  • US blockade targets Iran oil boom amid regional disruption
    ANALYSIS

    US blockade targets Iran oil boom amid regional disruption

  • Iran's digital economy battered by prolonged blackout
    INSIGHT

    Iran's digital economy battered by prolonged blackout

•
•
•

More Stories

Iran Has Tools To Resist Excessive Demands In Nuclear Talks – Foreign Minister

Jun 12, 2022, 19:51 GMT+1

Iran’s foreign minister says Tehran is resisting excessive demands presented “by the other side” in talks to restore the 2015 nuclear deal that have stalled since March.

Hossein Amir-Abdollahian made the remarks on Sunday after attending a session of the Parliament’s Committee on National Security and Foreign Policy to brief lawmakers about a resolution passed by the board of governors of the International Atomic Energy Agency (IAEA) to condemn lack of cooperation by the Islamic Republic. 

“Every time that the opposite side put forth excessive demands during the [Vienna talks], we used the country’s own tools and power, so that they would understand that the interests and welfare of the Iranian nation were important to us,” he said without elaborating on the tools, but he was probably referring to the government’s decision to reduce monitoring access to the UN nuclear watchdog. 

Iran told the IAEA it plans to remove more monitoring equipment after the 35-member IAEA board Wednesday passed the resolution. Tehran says it intends to maintain a basic level of monitoring and inspectors’ access as required under the Nuclear Non-Proliferation Treaty (NPT).

In a statement issued by the Iranian parliament on Sunday, 260 lawmakers slammed the IAEA's “excessive, politically-motivated measure,” saying the resolution proves that the agency and its director general have lost all their technical credibility, in reference to Rafael Grossi’s recent visit to Israel.

On Friday, all Friday Prayer Imams in Iran, who are representatives of the Supreme Leader, backed the decision to reduce relations with the IAEA.

US Envoy Malley, South Korean Top Diplomat Discuss Iran

Jun 11, 2022, 11:25 GMT+1

The United States Special Representative for Iran Robert Malley held an “excellent” phone conversation with South Korean First Vice Foreign Minister Choi Jong-kun about Iran.

Malley said in a tweet on Friday that Washington and Seoul “are committed to coordinating our efforts across a wide range of shared interests on Iran.”

He did not elaborate on what exactly was discussed but the two diplomats probably talked about the Islamic Republic’s frozen assets in Korean banks due to US sanctions. 

Since the beginning of the year, Iran and South Korea announced on several occasions that they would start negotiations to devise a mechanism to release the funds frozen, but nothing materialized.

Two South Korea banks hold $7-9 billion of Iranian money, owed for oil imports, but the funds are locked under US sanctions, which were reimposed after former President Donald Trump in 2018 withdrew from the Iran nuclear deal, Joint Comprehensive Plan of Action (JCPOA).

In April, Iranian media said $7 billion of Iran's frozen funds in South Korea will be freed in exchange for the release of three American dual citizens held as hostages in Tehran.

Iranian hardliner newspaper funded by Iran’s Supreme Leader suggested later in April that Iran must close the Strait of Hormuz to South Korean vessels until Seoul releases $7 billion frozen funds.

US National Security advisor Jake Sullivan said in May that Iran’s money in South Korea and elsewhere will remain frozen as long as a nuclear deal has not been reached.

Conservative Paper Calls For Axing Iran’s Islamic Propaganda Outfit

Jun 11, 2022, 10:38 GMT+1
•
Iran International Newsroom

A conservative newspaper in Iran has called on President Ebrahim Raisi to shut down the Islamic Propagation Organization and spend the budget on pressing needs.

In an editorial authored by the daily's outspoken managing editor Masih Mohajeri on June 9, Jomhouri Eslami [Islamic Republic] writing about the Iranian government's economic problems said, "A government that holds up payments to pensioners as a bid to solve its economic problems should prioritize its expenditures and get rid of unnecessary organizations."

The daily asked: "Some of Iran's cultural organizations do nothing other than duplicating the efforts of other government institutions. For instance, what kind of service is the Islamic Propagation Organization rendering that justifies its survival?" The newspaper maintained: "The high-maintenance organization should have attained its initial goals during the past 40 years [of an Islamic government]. If it hasn't, it means that it has not been successful."

The Islamic Propagation Organization is a body that operates in parallel with Ministry of Culture and Islamic Guidance and one of its objectives is offering guidelines to Friday Prayer Imams in cities and towns nationwide.

Over the past four decades, the organization's main function has been justifying the government's policies and trumpeting the ideas of fundamentalists in Iran such as the Friday Prayer Imams in Isfahan and Mashhad. The two clerics are often criticized by the people for undermining human rights and advocating violence against women and those who follow a lifestyle different from the preferences of the fundamentalists.

Masih Mohajeri, the conservative editor who called for abolishing Islamic proaganda outfits. FILE
100%
Masih Mohajeri, the conservative editor who called for abolishing Islamic proaganda outfits

Last week, a young man in Isfahan attacked Yousef Tabatabainejad, the Imam in Isfahan who had opined that people can attack "bad-hijab" women at their own discretion. In their sermons on Friday June 10, several imams made outlandish statements. Ignoring Iran's economic problems, Rasoul Abdollahi who led the prayers in Tabriz said that Raisi's economic policy is being followed in Russia as an economic model for resistance.

Meanwhile, Mohamad Nabi Mousavi Fard in Ahwaz called for shaming those who undermine “Islamic values in the streets” as a lesson for others, while Ahmad Khatami in Tehran and many others in other cities repeated the official jargon about a resolution passed this week at the UN nuclear watchdog, the IAEA, criticizing Iran's non-cooperative behavior and praised the government for undermining IAEA safeguards.

In another article on Thursday, the Jomhouri Eslami wrote that the government has increased the Islamic Propagation Organization's budget by 156 per cent in for the current year. The article charged that the government of President Ebrahim Raisi has started what he called an "economic surgery" by targeting the poorest Iranians while giving more funds to government bodies such as the Islamic Propagation Organization.

Last year the organization received around $40 million based on the average exchange rate in 2021, there fore this year the appropriation is more than $100 million. Although this might not seem like a large sum by Western standards, in Iran an average person has a salary of $150 per month.

Overall, the government spends close to $800 million on propaganda outfits, not counting the state television with close to 40,000 employees and a $200 million budget plus advertising income.

The article went on to say that such organizations have been a burden on the country's annual budget and national financial resources for years without being able to contribute to productive efforts or the nation's welfare. The daily argued that economic pressures should be distributed fairly among various parts of the government and groups of the population.

Friday Prayers Leaders Back Iran’s Removal Of IAEA Cameras

Jun 11, 2022, 00:52 GMT+1

Friday Prayer leaders in Iran have backed the government’s decision to reduce access to the UN nuclear watchdog, IAEA, in the wake of a critical resolution adopted against Tehran.

The Friday Imams described removing the monitoring equipment installed by the International Atomic Energy Agency as the first step in reducing relations with the agency, with Tehran's Friday prayer Imam Ahmad Khatami condemning the IAEA resolution against Iran and saying that “the revolutionaries hit the bully in the mouth."

Referring to the IAEA director general Rafael Mariano Grossi's visit to Israel, the hardliner cleric called on the authorities "not to provide complete information to the IAEA." 

Similar remarks against the resolution and IAEA’s monitoring of Iranian facilities were made during the Friday prayer sermons in several other cities, including Esfahan, Arak, Bushehr, Ilam, and Ahvaz. 

Iran told the IAEA it plans to remove more monitoring equipment after the 35-member IAEA board Wednesday passed the resolution. Tehran says it intends to maintain a basic level of monitoring and inspectors’ access as required under the Nuclear Non-Proliferation Treaty (NPT).

The contents of Friday Prayer sermons delivered by Khamenei's local representatives in various cities are dictated by two state bodies close to Khamenei's office, officially known as "The Policy-making Council for Friday Prayer Imams" and the "Friday Prayer Headquarters," both dominated by hardliner clerics.

Iranian Teachers Plan New Round Of Nationwide Strikes, Protests

Jun 10, 2022, 16:24 GMT+1
•
Iran International Newsroom

While many cities across Iran are scenes of protests by various union activists, Iranian teachers have announced a nationwide protest slated for next week.

The Coordination Council of Iranian Teachers’ Trade Associations issued a statement on Thursday, calling on teachers all over the country to take to streets on June 16 from 10:00 AM to 12:00 PM local time and demand their legal rights.

Teachers have been often holding protests for nearly a year, but the political situation in Iran has worsened in recent months, with rising food prices and a growing perception of government inefficiency and corruption.

The statement said their demands include better salaries, freedom of their colleagues arrested during the previous rounds of demonstrations as well as standard education facilities and free education for students. They also demand the implementation of decade-old legislation that would bring the salaries and pensions of 750,000 teachers in line with other civil servants.

Emphasizing that holding protests for their demands is among their basic rights, the statement added that the authorities are charging union activists with fabricated accusations of endangering the security of the country, as a last resort to repress the protests and ignore teachers’ demands.

“We declare loudly that if our colleagues are not released immediately and unconditionally, and the legitimate demands of Iranian teachers are not fulfilled, the protests will continue,” the statement read.

The teachers’ restlessness coincides with protests by Iranian retirees, which started Monday and continued Thursday in several cities across the country.

The pensioners, who are protesting the meager rise in their pensions while the inflation rate is hovering at over 40 percent, gathered in front of the offices of the Social Security Organization in the cities of Karaj, Zanjan and Arak among others. Just a few days ago the government announced that pensions for most retirees will increase by just 10 percent.

On Monday, enraged protesters chanted slogans such as “Death to Raisi”, directing their anger at President Ebrahim Raisi and denounced “empty promises” by the government. Videos surfaced on social media Thursday showing people cheering for the Pahlavis, who ruled Iran before the 1979 Islamic revolution, praising the Shah’s government for taking care of them.

On Tuesday, videos showed the bazaar in the northwestern city of Tabriz was on strike with merchants shutting down their stores and businesses in protest to a sudden increase in sales tax.

On Wednesday, similar strikes and protest rallies were reported by merchants in the southern city of Bandar Abbas.

Strikes in Bazaar, or traditional retail market, have a deep historical root in Iran and signal a serious political and economic crisis. The bazaar strikes played a major role both in the Constitutional Revolution of the early 20th century and the 1979 revolution against the monarchy.

Four years of deep economic crisis in Iran following the introduction of United States ‘maximum pressure’ sanctions in 2018 has led to sharp increases in living costs and to labor unrest. In January hundreds of firefighters and staff from the judiciary took to the streets in several cities. Prison guards have also picketed to protest their salaries.

People from different walks of life, including teachers, nurses, firefighters, and even judiciary department employees and prison guards, have held protest rallies or strikes to demand higher salaries.