Falling oil income disrupts Iran’s vital imports, MP says
An Iranian lawmaker says a sharp fall in the country’s oil revenue has disrupted imports of essential goods and created new pressure on the economy.
An Iranian lawmaker says a sharp fall in the country’s oil revenue has disrupted imports of essential goods and created new pressure on the economy.
Jabbar Kouchakinejad, a member of parliament’s budget and planning committee, said Iran has been unable to secure enough foreign exchange for key imports.
“Because of reduced oil income, we cannot provide the required foreign currency for basic goods,” he told ILNA news agency. He said allocations for essential imports fell from 18 billion dollars last year to about 11 billion dollars this year.
Kouchakinejad said much of Iran’s oil sold to China has not been converted into usable currency, while sanctions have forced Tehran to offer heavy discounts.
“Although the oil minister says sales are good, the revenue is not returning to the country,” he said, adding that this has led to import restrictions and shortages in several sectors.
Structural problems worsen fiscal gaps
Economists say the country’s chronic budget deficit, high inflation and weak productivity stem from a large, costly bureaucracy and overlapping agencies. They warn that without reform, Iran’s economy will remain vulnerable to external shocks and sanctions.
Economist Mehdi Pazouki said the unchecked expansion of the administrative system has fueled inflation and wasted public resources. “Without discipline in spending, it will be very difficult to stabilize the economy,” he said.
Analysts warn of harder year ahead
Experts say Iran’s economic outlook may worsen next year when renewed UN sanctions triggered by European powers take full effect. Economist Morteza Afghah said growth targets of eight percent are unrealistic under current conditions, noting that “even without war and sanctions, such goals would be unattainable.”
Kouchakinejad said the monthly treasury reports confirm a decline in oil income, though the exact figures remain classified. “The fall in revenue has made it difficult to forecast foreign currency inflows and fund imports,” he said.
US President Donald Trump attended the ceremony and received the inaugural FIFA Peace Prize from Gianni Infantino, the president of FIFA (Fédération Internationale de Football Association), world football’s governing body, for promoting global peace and unity.
“This is truly one of the great honors of my life. Beyond awards, we have saved millions and millions of lives," Trump said. "The Congo is an example. India, Pakistan — so many different wars we were able to end, in some cases, a little bit before they started."
Iran will open the tournament against New Zealand on 15 June in Seattle, with further group games in Los Angeles and Atlanta.
Several senior Iranian football officials were denied US visas for the 2026 FIFA World Cup draw in Washington, prompting an initial threat by the Iran Football Federation (FFIRI) to boycott the event.
Out of nine members of the delegation who applied for visas, only four were granted entry, including head coach Ardeshir Amir Ghalenoei, while other senior officials, including federation president Mehdi Taj, were denied.
Despite the visa restrictions, the partial delegation attended the draw ceremony, ensuring Iran’s participation.
The team has now reached its seventh World Cup and its fourth in a row. Their arrival in the US comes against the backdrop of longstanding entry restrictions that continue to shape travel rules for Iranian nationals.
The top two teams and the eight best third-placed sides will advance to the round of 32.
Ali Akbar Velayati's remarks on X were a rare sharp public rebuke to one of Iran's Arab neighbors across the Persian Gulf, with whom Tehran has long feuded but has shifted toward detente in recent years as pressure from the United States and Israel mounted.
The Southern Transitional Council, a separatist force in Yemen which has long been backed by Abu Dhabi, jolted the stalemated conflict in that country this week.
Their surprise march on oil-rich southeastern territory aims to strengthen their bid to revive an independent state of South Yemen.
The armed Houthi movement, a foe of the STC, is not directly challenged by the latest fighting but their patrons in Tehran appear rattled.
"The government of the UAE must be asked: What were you doing in Yemen?" Velayati wrote. "Are you also interested in claiming ownership of the Bab al-Mandeb Strait? Why did you occupy the island of Socotra, and what was its connection to America’s maritime ambitions? Do you also claim ownership over this island and over the Strait of Hormuz?"
Velayati is a veteran stalwart of high level decision-making circles in the Islamic theocracy and his statements are widely viewed to reflect Khamenei's thinking.
The oil-rich Emirates, a tourism and trade hub, sees itself as a rising regional power and has backed allies in conflicts marring Libya, Sudan, Somalia and Yemen.
It maintains a military presence on the remote Arabian Sea island of Socotra and has economic interests in ports in Djibouti and the breakaway republic of Somaliland.
Joining a regional conflagration pitting Iran's armed allies against Israel, the Houthis in Yemen launched attacks on international shipping for two years until a Gaza ceasefire in October in the Red and Arabian seas connected by the Bab al-Mandab strait.
The United States and its Persian Gulf allies viewed the attacks as a bid to expand Iranian hegemony in the strategic chokepoint leading to the Suez Canal.
Washington, in an annual national security assessment released earlier on Friday, downplayed the threat from Iran after US attacks on its nuclear facilities in June but vowed to keep the Straight of Hormuz open.
Tehran officials have repeatedly vowed to close the waterway, through which much of the world's energy exports from both Iran and the Arabian Peninsula flows, in the event of a conflict.
'Fantastical transnational empire'
Velayati went on to accuse Abu Dhabi of killing Muslims in a bid to build a regional empire in connivance with a Western colonial agenda.
"The blood of tens of thousands of Muslims in Yemen — and now in Sudan — has been spilled as a result of your expansionist policies. It must now be asked: What does the UAE want from Sudan," he said. Will you answer whether you are cooperating with Britain in Sudan or not?
"Why, in the view of many analysts, do your actions raise suspicions of an attempt to build a 'fantastical transnational empire'?" he added.
Tehran and Abu Dhabi have long been at loggerheads over three Persian Gulf islands controlled by Iran since 1971 but claimed by the United Arab Emirates.
Greater Tunb, Lesser Tunb and Abu Musa islands have been held by Tehran since they were seized by the Shah after the withdrawal of British forces from the region. Voices across the fractured Iranian political spectrum reject UAE claims, which are backed by Europe and the United States.
"Are your repeated empty claims regarding the Iranian islands also part of this cooperation with colonial powers?" Velayati continued. "How can anyone claim ownership of Abu Musa, which belonged to Iran thousands of years before the formation of the United Arab Emirates?"
"The patience of the Iranian people is not unlimited."