Iran: Oil leaves Iran high and dry

Ideologically the US and Iran are far apart, but economically they are uncomfortably linked. As the US recession spurs an oil-price crash, Iran’s populist financial policies might be set to face substantial obstacles.

What international sanctions against Iran were not able to achieve might come about through a funding crisis.

The oil boom helped the Iranian government to bolster its popularity with cash handouts. Partly because of this, imports ballooned to almost $50 billion during the past Iranian year. Imports rose 20% during the first quarter of the present Iranian year (which began on March 21) compared with the same quarter the previous year, according to the latest central bank figures.

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