US sanctions deepen Iran crisis as oil nears $100

Brent crude rose to $97 a barrel before retreating to $95.50 as disruption to Iranian oil supplies added to concerns about global availability. At the same time, U.S. sanctions and a blockade of Iranian oil exports have tightened the economic squeeze on Tehran.

Three senior Iranian sources told Reuters that the latest measures were becoming increasingly difficult for Iran to withstand. The sanctions have narrowed the country’s routes to foreign currency and made it harder to import essential goods.

Iranian crude loadings have fallen to about 260,000 barrels per day this month, down from around 1.7 million barrels per day a year earlier, according to Kpler. The disruption has also affected energy supplies and shipping through the Strait of Hormuz, although some oil continues to pass through the strategic waterway.

Iran’s currency has weakened from roughly one million rials to the dollar a year ago to more than 2.2 million rials now. Official figures put average 12-month inflation at 69.9%, while food, beverage and tobacco prices have risen at nearly twice that rate.

The cost of maintaining front companies, unregistered tankers and smuggling operations has also increased. Iranian President Masoud Pezeshkian said trade had fallen by 25% to 35%, with imports suffering more than exports. The United Arab Emirates further disrupted Iranian commerce by announcing on August 19 that commercial exchange and financial dealings with Tehran had been halted until further notice.

Iran’s domestic fuel position has become another pressure point. One senior Iranian source said the country had about two months of petrol supplies and still needed imports because its refining capacity was limited, despite producing oil domestically.

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It simply means the government agency is not ‘in a position to deny or admit’ the existence of an investigation. It protects government personnel and the techniques and sources law enforcement agencies use to investigate and prosecute crimes.