Iran Defies U.S. Sanctions: New Oil Deals Signal a Major Shift in Power

BRICS member Iran is finding new countries to sell its oil and giving the US a run for its money. Iran’s oil production has now hit its highest since 2018 allowing it to export the commodity to new countries. Despite the US sanctions, Iran is looking to boost its economy through exports with the help of new countries.

The two new countries that have agreed to buy oil from Iran are non-BRICS nations. Since the US has placed sanctions on Iran, chances are high that the trade could be settled in local currencies. 

BRICS: Iran Finds 2 New Countries To Export Oil, Bypass US Sanctions

The two new countries that will start buying oil from BRICS member Iran are Bangladesh and Oman, Reuters reported. Iran’s crude oil production averaged 3.22 million barrels per day (bpd) in July 2024. This is the highest level of Iranian oil output in six years in 2018, according to data.

Due to growing demand, Iran is now looking to increase its output capacity to 4 million barrels per day. Therefore, the output capacity will be improved by close to 20% in the coming months. Iran’s oil revenue has touched $28.4 billion annually after scaling up from a low of $9 billion in 2020. Its oil exporting value surged after Iran joined the BRICS alliance on the heels of the US sanctions.

In addition, Petroleum Minister Javad Owji confirmed that Iran is exporting oil to over 17 countries currently. He said in a recent interview that the Islamic Republic has managed to neutralize the US sanctions on oil and gas exports. Iran joining BRICS has also given the country a boost and better its prospects to attract new oil buyers.

This article originally appeared on Watcher Guru.