Iranian Central Bank Governor Confirms Near Halt of Oil Exports

Abdolnaser Hemmati, Governor of the Central Bank of Iran, confirmed that the country's oil exports have almost entirely ceased under current circumstances, attributing this to the imposed blockade and maximum sanctions. Hemmati stated in remarks to Iranian television that "oil exports have virtually stopped, but we have planned well to secure foreign exchange resources." He added that the country faces "four or five major challenges, including maximum sanctions, the blockade, oil export halt, and budget imbalance, each imposing additional pressures." He further explained that "citizens' purchasing power has decreased, and we will work wisely and calmly to address the situation and compensate for this decline." Reports indicate that the naval blockade on the Strait of Hormuz since last February has inflicted significant economic losses on Tehran, with a marked decline in oil revenues from $45 billion in June to near-zero levels in July. This has led to the collapse of the Iranian currency and a surge in inflation to record levels exceeding 80%. According to data from oil tracking firms, Iran has managed to resume limited loading operations at the strategic Kharg port after a 25-day halt. Indicators suggest Tehran's increasing reliance on alternative routes, such as northern ports on the Caspian Sea and smuggling channels via intermediaries, to counter the blockade's effects. Regarding economic relations, Hemmati clarified that the volume of trade with Iraq reached approximately $12 billion before the crisis. He affirmed that negotiations are underway with Iraqi officials concerning exchange rate disputes, noting that "the issue related to our funds in Iraqi banks is being resolved." He added that "following recent talks with Iraqi officials, existing obstacles to banking transactions were removed, paving the way for the utilization of these resources in the coming weeks." These developments follow the expiry of the 60-day deadline for the Memorandum of Understanding between Iran and the United States on August 17, which included arrangements to end the conflict and pave the way for broader nuclear talks. However, negotiations have stalled, with Tehran insisting on keeping the Strait of Hormuz closed until Washington complies with its conditions.