Treasury, State Sanctions Against Iran Cut Deeply into Its Economy
July 8, 2019 (EIRNS)—The Pompeo-Mnuchin sanctions against Iran are cutting deeply into the nation’s economy, standards of living, and it appears, health-medical conditions. Unlike sanctions against China or Russia’s economies, which are large and which can compensate by making some diversifications with trading partners, and can develop internal production plans, Iran’s economy lacks the ability to diversify.
In 2017, of Iran’s $53.7 billion in total goods and services exports, $38.5 billion were crude petroleum exports, and another $5.4 billion were exports of petroleum-derivatives (such as ethylene polymers); thus, a combined 81% of exports are petroleum or petroleum-based, vulnerable to sanctions.
Iran’s shipment of crude oil has plunged from 2.5 million barrel per day (bpd) during April 2018, the month before the U.S. withdrew from the JCPOA and started to increase sanctions, to between 400-500,000 bpd, in May 2019, a plunge of fourth-fifths in volume in one year.
Deutsche Welle on June 24, in “How Trump’s Sanctions are Crippling Iran’s Economy,” highlights the catastrophe, writing that “Iranians ... have seen the value of Iran’s currency, the rial, plummet about 60% over the past year. Inflation is up to 37% and the cost of food and medicine have soared 40 to 60%, according to EU figures.” This has put health are beyond the reach of most citizens.
Iran has lost nearly 500,000 jobs, in a country were youth unemployment is almost 30%.