A new report by a strategic advisory firm in Washington, D.C., reveals that since the United States and its allies signed an interim nuclear deal, the Middle Eastern nation’s most important sector of its economy — energy — has seen a boost.
Sidar global advisers reported that, due to the deal, Iran oil sales are up, as well as interest in foreign investment.
“Iranian oil sales in January of this year were 1.32 million barrels per day (bpd), an increase of 100,000 bpd, an improvement largely brought on by Chinese purchases. Additionally, foreign oil companies such as Total and Lukoil have met with Iranian representatives in an effort to set up energy investments as soon as possible, should the political situation continue to improve,” read the report.
Iran’s long-term economic growth, however, remains uncertain.
Sidar said Iran’s vast oil and natural gas reserves (thought to be the fourth-highest and second-highest in the world) might not be enough to overcome the country’s 20-percent inflation rate, billions of dollars wasted by fiscal malfeasance and political infighting that could derail negotiations with the West at any time.
“Economic improvement is contingent upon political progress, a deeply uncertain prospect given the massive gap in trust present in both Iran’s external relations as well as among its internal political factions,” the report concluded.