High oil prices and complicated financial schemes have helped the Iranian regime survive sanctions, analysts and officials have said, even as oil production has plummeted and inflation has soared.
Iranian oil production has plunged to its lowest since the aftermath of the Iran-Iraq war 20 years ago. This is largely because of US and European sanctions – including US restrictions on the dollar in the Iranian oil trade and an EU embargo on oil – which are designed to persuade the country to halt its nuclear programme.
The US, which also bans trade with a range of Iranian financial institutions, has tried to convince banks around the world to stop business dealings with Iran.
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