Iran’s floating oil reserves are running out

Energy crisis can turn into a tsunami of inflation, disrupting imports

✍ Farzaneh Tehrani The issue for Iran today is not only that we have several million barrels of oil on the water or that a few tankers are still on the way. The bigger and sadder issue is this!

🔹 The path for Iran’s oil sales is drying up. Even floating storage, however large it may be, is not an endless warehouse.

🔹 Oil that cannot be delivered from the well to the customer is not income for Iran’s economy; it is only barrels whose production, storage, and risk costs increase every day.

🔹 The time for playing with words has run out. The way out is not chanting slogans from podiums. You cannot fight with the world, close the Strait, and sell oil at the same time! Economics is not a field of imaginary miracles.

🔹 When the foreign-currency lifeline of a country whose budget is addicted to the smell of oil is cut off, an energy crisis can turn into a tsunami of inflation, disruptions in imports, and the erosion of livelihoods.

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