Dwindling oil revenue is driving Iran into deeper economic crisis - report

A Wall Street Journal report reveals that a US naval blockade has severely reduced Iran's oil exports, with no crude passing through the Strait of Hormuz since mid-July. Oil stocks have plummeted from 90 million to 29 million barrels, and inflation exceeds 80%. The US strategy aims to pressure Tehran into concessions, but analysts doubt capitulation.

A Wall Street Journal report details how a US naval blockade has strangled Iran's oil exports, driving the country deeper into economic crisis. Since the blockade was reinstated in mid-July, no Iranian crude has passed through the Strait of Hormuz. Oil stocks have fallen from 90 million barrels to around 29 million, with supplies possibly running out next month. August loadings averaged 255,000 barrels per day, 85% below the February-April average. Inflation exceeds 80% year-over-year, and the IMF forecasts a 5.4% economic contraction for 2026, the worst since the 1980s. US Treasury Secretary Scott Bessent announced new sanctions under 'Operation Economic Outcast', targeting companies supporting Mahan Air. Analysts quoted in the report, including Ellie Geranmayeh of the European Council on Foreign Relations, express doubt that economic pressure will force Iran to capitulate, suggesting the regime is likely to resist. The report notes that roughly a third of Iran's state budget is funded by oil revenue, which also finances the military.