Iran sold more than 40 million barrels of oil in 2 weeks

On June 30, Iran’s chief negotiator Mohammad Bagher Ghalibaf said the country had exported more than 40 million barrels of crude oil in 2 weeks, since the US lifted the blockade on seaports. Iranian crude oil is also currently sold at a price about 20% higher than before the war.

“Since the day the blockade was lifted, we have exported more than 40 million barrels of oil,” Ghalibaf said in an interview posted on his Telegram channel. He said Iran has not been able to sell any barrels of oil during about two months of blockade.

Meanwhile, tanker tracking firm TankerTrackers.com estimated on July 1 that Iran exported about 50 million barrels of crude oil in the past two weeks. The company uses satellite imagery, shore-based photography and real-time automatic identification systems (AIS) to track ship movements.

Brent oil prices are currently trading around 73 USD per barrel, down nearly 40% compared to the peak in April, thanks to expectations of supply recovery from the Gulf region. Gregory Brew – analyst at Eurasia Group said that before the war, Iranian crude oil was often sold at a price lower than Brent by about 10-15 USD a barrel to offset the risks caused by sanctions.

Before the war, data firm Kpler said Iran’s crude oil and condensate exports in February reached 2.2 million barrels a day. This Gulf country is also the third largest crude oil producer in the Organization of Petroleum Exporting Countries (OPEC).

On June 17, the US and Iran signed a memorandum of understanding to end nearly 4 months of hostilities, at the same time reopen the Strait of Hormuz and continue the 60-day negotiation process to reach a long-term peace agreement. According to the minutes, Iran agreed to allow ships to pass through Hormuz without tolls for 60 days, but affirmed that it would retain control of this waterway.

“Sovereignty over the Strait of Hormuz belongs to Iran and Oman. Traffic activities in the strait must comply with the regulations set by Iran,” Mr. Ghalibaf affirmed.

It remains unclear how the Strait of Hormuz will be managed after the 60-day period ends. In recent times, ships have moved through the strait along the southern corridor along the coast of Oman or through the northern routes controlled by Iran.