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Iran Regime’s VP: “Sharp Drop in Oil Revenue.” What Does This Mean for the Mullahs?

Iran Regime’s VP: “Sharp Drop in Oil Revenue.” What Does This Mean for the Mullahs?
Iran: Sharp drop in oil revenue

Eshagh Jahangiri, the Iranian regime’s vice president, acknowledged that there has been a sharp drop in the regime’s oil revenues due to United States sanctions, with the revenue at around $8 billion last year 

Regretting the past, when due to the appeasement policy, the regime was able to have huge oil revenues for funding its illicit activities, Jahangiri said on Saturday: “We had $100 billion oil revenues. But our total oil revenue in last year was around $8 billion. This decrease of revenue has had an impact on all parts, including the government’s budget.”  

The regime for years used Iran’s huge oil and gas revenues for funding its terrorist proxy groups abroad and oppressive forces inside Iran, or the money simply vanished in the regime’s blackhole of institutionalized corruption and embezzlement.  

Hassan Nasrallah, head of the Lebanese Hezbollah terrorist group, previously said: “Brothers, we are not ashamed to say that Hezbollah’s budget, expenses, food, and weapons are from the Islamic Republic of Iran. As long as Iran has money, it means we have money. Do you want more transparency?” 

Despite being under sanctions and the sharp drop in the country’s revenues, the regime has not ceased plundering the national wealth to fund its malign activities or fill the pocket of its mercenaries. Yet, to avoid mentioning the real reason for Iran’s economic collapse, Jahangiri said: “People should know we are under sanctions and facing the coronavirus crisis. The coronavirus phenomenon has alone disrupted the world’s biggest economies. Americans and Europeans have acknowledged this fact that during the last century, the global economy had never faced such a great challenge.”  

Since the U.S. has sanctioned any financial and banking transactions with the Iranian regime, it has become difficult for the regime to receive even a small amount of its oil revenue. Recently, the Iranian regime’s president Hassan Rouhani criticized South Korea for blocking the regime’s oil export revenue and desperately demanded that the chief of the regime’s Central Bank take legal action to free the regime’s money.  

The Iranian regime faces an unprecedented fall in oil sales. In this regard, Mohammad Baqer Nobakht, head of the Plan and Budget Organization (PBO) of the Iranian regime, said in December 2019: “For 2020, the daily export of one million barrels of oil at the rate of $50 barrels per day (BPD) has been predicted.” 

In a report published by Reuters on May 14, it was mentioned that Iran’s oil exports “averaged 70,000 barrels per day in April, down from 287,000 BPD in March, according to Kepler, which tracks the flows.” 

The question is: what this means to the Iranian regime and what are its consequences.  

The regime needs money to fund its illicit activities. As the international pressure on the regime continues to grow, particularly amid the COVID-19 pandemic, the regime continues plundering people’s wealth, resulting in more poverty. Considering the public dissatisfaction and anger of the Iranian people against this regime, which has resulted in the great uprisings of 2017-2019 and the beginning of 2020, a bleak future awaits the mullahs’ regime.  

On June 4, the state-run Eqtesad News website wrote: “According to the Majlis Research Center, the poverty line of four-person households in Tehran has increased from 2.5 million tomans to 4.5 million tomans in the last two years, which means that the inflation rate has increased by 80%, and this inflation rate has led to significant growth in the poverty line in Tehran and other parts of the country. This, along with a significant reduction of general income, has led to an increase in the poverty rate over the years, and the available evidence suggests that this variable is increasing in 2019 and 2020.” 

In a nutshell, the prospect is not only a fall in oil sales but also the collapse of the ruling religious dictatorship in Iran, and the regime will not and is unable to prevent this or take necessary actions to address the people’s economic hardships.  

As Mrs. Maryam Rajavi, the President-elect of the National Council of Resistance of Iran (NCRI), has said: All the promises by the mullahs to the deprived and calamity-stricken people of Iran are hollow and worthless. The only way to end poverty, destitution, and unemployment is to end the mullahs’ evil dictatorship and establish freedom and people’s sovereignty. 

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