US and Iran play cat and mouse on oil sanctions

Iran continues to be able to sell oil to countries such as China despite the reimposition of "maximum pressure" sanctions by the United States, according to Iran International.

The aim of the sanctions is to target the entire Iranian network of companies, brokers, and tankers which seek to evade US sanctions and sell oil illicitly.

Treasure Secretary Scott Bessent said that “Iran continues to rely on a shadowy network of vessels, shippers, and brokers to facilitate its oil sales and fund its destabilizing activities. The United States will use all our available tools to target all aspects of Iran’s oil supply chain, and anyone who deals in Iranian oil exposes themselves to significant sanctions risk.”

The Trump administration nevertheless has its work cut out for it, as Iran International reports that Iranian oil sales netted $53 billion in 2023 and $54 billion a year earlier, according to official US estimates, and output last year hit its highest since Trump imposed his original maximum pressure sanctions in 2018, though also after Joe Biden lifted many of those sanctions in the hopes of securing a new nuclear deal.

Iran nevertheless continues to suffer serious economic problems at home, even with some successful efforts at bypassing UN sanctions. Electricity production remains a problem, with frequent blackouts in schools, homes and public buildings.

Inflation and the collapse of Iran's currency to almost one million rials on the dollar have driven problems from a shortage of medical goods and doctors to inadequate pension payments to frequent protests over the cost of living. In addition, some 50% of those between the ages of 24 and 50 are unemployed.

Things have reached the point that Iran's highest-ranking military officer has publicly advocated for privatization as the nation faces chronic energy shortages and rampant inflation.

“The model for the country's salvation is to turn to the people. If we want to solve the economy, the solution is to turn to the private sector and entrust work to the people," Major General Mohammad Bagheri said.