China oil imports from Iran surge to 1.75 million bpd

According to reports, Chinese import of Iranian oil has reached a record of 1.75 million barrels per day (bpd) in August. The current figure has surpassed the previous peak of 1.66 million bpd achieved in October 2023 and is almost 50% higher compared with 1.24 million bpd in July.

Shipments into Rizhao and Dalian are significantly higher month on month, said Muyu Xu, an analyst with Kpler

“Chinese teapots see refining margins slightly improving, they now have stronger motivation to ramp up production and therefore need more feedstock,” she said.

Flows into Lanqiao/Rizhao and Dalian almost doubled compared to the previous month to 342,000 bpd and 132,000 bpd, respectively.

Oil from Iran has become the cheapest option for Chinese buyers, even more than Russia and more independent refiners are seeking barrels from the OPEC producer to boost their margins, said traders who participate in the market.

Iranian Light was last offered at a discount of US$6.0 a barrel to ICE Brent, they added, compared with a discount of less than a dollar for comparable crude from Russia.

Importers registered in China’s Shandong province were the biggest buyers of Iranian crude - masking as Malaysian - accounting for over 70% of the volume, according to customs data. Overall, eight Chinese regions including Liaoning and Henan took oil from the Southeast Asian nation, the most since October 2023.

Earlier this month, Reuters reported that Iran has also been expanding its oil destination markets as the country is pushing to send more oil to the global markets in an attempt to neutralize Western sanctions.

Iran has sent shipments of crude oil to new destinations such as Bangladesh and Oman, according to shipping sources and data cited by Reuters.

Oil sales are Iran's major revenue source and the country has been looking for ways to sidestep US sanctions on its crude exports that former president Donald Trump re-imposed in 2018 over Tehran's nuclear program.

Iran, which is exempt from output quotas set by the Organization of the Petroleum Exporting Countries (OPEC), is striving to maximize production and exports.

Former Oil Minister Javad Oji said in July that Iran was selling crude oil to 17 countries, including those in Europe, according to Mehr News Agency.

In one new trade, the Golden Eagle tanker sailed near the port of Chittagong in Bangladesh earlier this year after receiving oil from another vessel that loaded it from Iran’s Kharg Island according to available evidence based on shipping data, Claire Jungman, from US advocacy group United Against Nuclear Iran, told Reuters.

The Golden Eagle offloaded parts of the cargo to smaller tankers in ship-to-ship transfer operations around Chittagong in April, said Jungman, whose organization tracks Iran-related tanker traffic via satellite data.

The shipment to Bangladesh was separately confirmed by another oil export tracking source.

An official with state-owned Bangladesh Petroleum Corporation, which operates the country's main refinery, said it did not buy the cargo and it was difficult to establish who the buyer was.

Pezeshkian message to the world

Iran's President-elect, Masoud Pezeshkian, has issued a detailed letter outlining his policies. There is an urgent need to understand his message, particularly for the regional countries so that these don’t fall in the trap of anti-Iran and anti-Muslim elements. 

Following is the text of his message:

On May 19, 2024, the untimely passing of President Ebrahim Raisi - a deeply respected and dedicated public servant - in a tragic helicopter crash precipitated early elections in Iran, marking a pivotal moment in our nation's history.

Amidst war and turbulence in our region, Iran’s political system demonstrated remarkable stability by conducting elections in a competitive, peaceful, and orderly manner, dispelling insinuations made by some “Iran experts” in certain governments. This stability, and the dignified manner in which the elections were conducted, underscore the discernment of our Supreme Leader, Ayatollah Khamenei, and the dedication of our people to democratic transition of power even in the face of adversity. 

I ran for office on a platform of reform, fostering national unity, and constructive engagement with the world, ultimately earning the trust of my compatriots at the ballot box, including those young women and men dissatisfied with the overall state of affairs. I deeply value their trust and am fully committed to cultivating consensus, both domestically and internationally, to uphold the promises I made during my campaign.

I wish to emphasize that my administration will be guided by the commitment to preserving Iran's national dignity and international stature under all circumstances. Iran’s foreign policy is founded on the principles of "dignity, wisdom, and prudence", with the formulation and execution of this state-policy being the responsibility of the president and the government. I intend to leverage all authority granted to my office to pursue this overarching objective. 

With this in mind, my administration will pursue an opportunity-driven policy by creating balance in relations with all countries, consistent with our national interests, economic development, and requirements of regional and global peace and security. Accordingly, we will welcome sincere efforts to alleviate tensions and will reciprocate good-faith with good-faith. 

Under my administration, we will prioritize strengthening relations with our neighbors. We will champion the establishment of a "strong region" rather than one where a single country pursues hegemony and dominance over the others. I firmly believe that neighboring and brotherly nations should not waste their valuable resources on erosive competitions, arms races, or the unwarranted containment of each other. Instead, we will aim to create an environment where our resources can be devoted to the progress and development of the region for the benefit of all. 

We look forward to cooperating with Turkiye, Saudi Arabia, Oman, Iraq, Bahrain, Qatar, Kuwait, the United Arab Emirates, and regional organizations to deepen our economic ties, bolster trade relations, promote joint-venture investment, tackle common challenges, and move towards establishing a regional framework for dialogue, confidence building and development. Our region has been plagued for too long by war, sectarian conflicts, terrorism and extremism, drug trafficking, water scarcity, refugee crises, environmental degradation, and foreign interference. It is time to tackle these common challenges for the benefit of future generations. Cooperation for regional development and prosperity will be the guiding principle of our foreign policy. 

As nations endowed with abundant resources and shared traditions rooted in peaceful Islamic teachings, we must unite and rely on the power of logic rather than the logic of power. By leveraging our normative influence, we can play a crucial role in the emerging post-polar global order by promoting peace, creating a calm environment conducive to sustainable development, fostering dialogue, and dispelling Islamophobia. Iran is prepared to play its fair share in this regard. 

In 1979, following the Revolution, the newly established Islamic Republic of Iran, motivated by respect for international law and fundamental human rights, severed ties with two apartheid regimes, Israel and South Africa. Israel remains an apartheid regime to this day, now adding "genocide" to a record already marred by occupation, war crimes, ethnic cleansing, settlement-building, nuclear weapons possession, illegal annexation, and aggression against its neighbors. 

As a first measure, my administration will urge our neighboring Arab countries to collaborate and utilize all political and diplomatic leverages to prioritize achieving a permanent ceasefire in Gaza aiming to stop the massacre and prevent the broadening of the conflict. We must then diligently work to end the prolonged occupation that has devastated the lives of four generations of Palestinians. In this context, I want to emphasize that all states have a binding duty under the 1948 Genocide Convention to take measures to prevent genocide; not to reward it through normalization of relations with the perpetrators. 

Today, it seems that many young people in Western countries have recognized the validity of our decades-long stance on the Israeli regime. I would like to take this opportunity to tell this brave generation that we regard the allegations of antisemitism against Iran for its principled stance on the Palestinian issue as not only patently false but also as an insult to our culture, beliefs, and core values. Rest assured that these accusations are as absurd as the unjust claims of antisemitism directed at you while you protest on university campuses to defend the Palestinians' right to life. 

China and Russia have consistently stood by us during challenging times. We deeply value this friendship. Our 25-year roadmap with China represents a significant milestone towards establishing a mutually beneficial "comprehensive strategic partnership," and we look forward to collaborating more extensively with Beijing as we advance towards a new global order. In 2023, China played a pivotal role in facilitating the normalization of our relations with Saudi Arabia, showcasing its constructive vision and forward-thinking approach to international affairs. 

Russia is a valued strategic ally and neighbor to Iran and my administration will remain committed to expanding and enhancing our cooperation. We strive for peace for the people of Russia and Ukraine, and my government will stand prepared to actively support initiatives aimed at achieving this objective. I will continue to prioritize bilateral and multilateral cooperation with Russia, particularly within frameworks such as BRICS, the Shanghai Cooperation Organization and Eurasia Economic Union. 

Recognizing that the global landscape has evolved beyond traditional dynamics, my administration is committed to fostering mutually beneficial relations with emerging international players in the Global South, especially with African nations. We will strive to enhance our collaborative efforts and strengthen our partnerships for the mutual benefit of all involved. 

Iran's relations with Latin America are well-established and will be closely maintained and deepened to foster development, dialogue and cooperation in all fields. There is significantly more potential for cooperation between Iran and the countries of Latin America than what is currently being realized, and we look forward to further strengthening our ties. 

Iran’s relations with Europe have known its ups and downs. After the United States’ withdrawal from the JCPOA (Joint Comprehensive Plan of Action) in May 2018, European countries made eleven commitments to Iran to try to salvage the agreement and mitigate the impact of the United States’ unlawful and unilateral sanctions on our economy. These commitments involved ensuring effective banking transactions, effective protection of companies from US sanctions, and the promotion of investments in Iran. European countries have reneged on all these commitments, yet unreasonably expect Iran to unilaterally fulfill all its obligations under the JCPOA. 

Despite these missteps, I look forward to engaging in constructive dialogue with European countries to set our relations on the right path, based on principles of mutual respect and equal footing. European countries should realize that Iranians are a proud people whose rights and dignity can no longer be overlooked. There are numerous areas of cooperation that Iran and Europe can explore once European powers come to terms with this reality and set aside self-arrogated moral supremacy coupled with manufactured crises that have plagued our relations for so long. Opportunities for collaboration include economic and technological cooperation, energy security, transit routes, environment, as well as combating terrorism and drug trafficking, refugee crises, and other fields, all of which could be pursued to the benefit of our nations. 

The United States also needs to recognize the reality and understand, once and for all, that Iran does not—and will not—respond to pressure. We entered the JCPOA in 2015 in good faith and fully met our obligations. But the United States unlawfully withdrew from the agreement motivated by purely domestic quarrels and vengeance, inflicting hundreds of billions of dollars in damage to our economy, and causing untold suffering, death and destruction on the Iranian people—particularly during the Covid pandemic—through the imposition of extraterritorial unilateral sanctions. The US deliberately chose to escalate hostilities by waging not only an economic war against Iran but also engaging in state terrorism by assassinating General Qassem Soleimani, a global anti-terrorism hero known for his success in saving the people of our region from the scourge of ISIS and other ferocious terrorist groups. Today, the world is witnessing the harmful consequences of that choice. 

The US and its Western allies, not only missed a historic opportunity to reduce and manage tensions in the region and the world, but also seriously undermined the Non-Proliferation Treaty (NPT) by showing that the costs of adhering to the tenets of the non-proliferation regime could outweigh the benefits it may offer. Indeed, the US and its Western allies have abused the non-proliferation regime to fabricate a crisis regarding Iran's peaceful nuclear program - openly contradicting their own intelligence assessment - and use it to maintain sustained pressure on our people, while they have actively contributed to and continue to support the nuclear weapons of Israel, an apartheid regime, a compulsive aggressor and a non-NPT member and a known possessor of illegal nuclear arsenal. 

I wish to emphasize that Iran’s defense doctrine does not include nuclear weapons and urge the United States to learn from past miscalculations and adjust its policy accordingly. Decision-makers in Washington need to recognize that a policy that consists of pitting regional countries against each other has not succeeded and will not succeed in the future. They need to come to terms with this reality and avoid exacerbating current tensions. 

The Iranian people have entrusted me with a strong mandate to vigorously pursue constructive engagement on the international stage while insisting on our rights, our dignity and our deserved role in the region and the world. I extend an open invitation to those willing to join us in this historic endeavor. 

  

Iranian LPG export on upward trajectory

Iran became the biggest West Asian supplier of Liquefied petroleum gas (LPG) last year. Its LPG exports surged 28% to over 11 million tons, according to an analysis of ship tracking data and market intelligence by consultancy Facts Global Energy (FGE). The firm expects exports to continue climbing beyond 12 million tons this year, Bloomberg reported

The increase is driven by rising production from the South Pars gas field as well as greater shipping capacity between Iran and China.

Iran exported 4.71 million tons of liquefied petroleum gas (LPG) in the first six months of 2023, according to the data released by S&P Global Platts.

Based on the Platts data, Iran's LPG exports loading in June were estimated at around 696,000 million tons, 28.5 percent less than May when 973,260 million tons of LPG was shipped.

Iran's average monthly LPG export in the first half of the past year was 784,833 tons.

Iran’s LPG exports mostly go to China despite the US sanctions, facilitated by Chinese shipowners who have developed an armada of very large gas carriers since sanctions were imposed on Iran in 2014 and then in 2018.

The Islamic Republic’s LPG exports could be higher without the restrictions that international shipping and trading firms face due to the sanctions and allow Iranian exporters to resume access to the global markets.

Liquefied petroleum gas, also referred to as liquid petroleum gas (LPG or LP gas), is a fuel gas that contains a flammable mixture of hydrocarbon gases, specifically propane, n-butane, and isobutane. It can sometimes contain some propylene, butylene, and isobutene.

LPG is used as a fuel gas in heating appliances, cooking equipment, and vehicles. It is increasingly used as an aerosol propellant and a refrigerant, replacing chlorofluorocarbons to reduce damage to the ozone layer. When specifically used as a vehicle fuel, it is often referred to as autogas or even just as gas.

 

 

Iran's BRICS membership a nail in the coffin of United States sanctions

Vahid Jalalzadeh, Chairman of the Parliament’s National Security and Foreign Policy Committee, said, “Iran’s membership in BRICS is a nail in the coffin of the unilateral sanctions of the United States.”

“One of the main features of the new world order is the strengthening and expansion of the front of resistance against the domination system, the decline of America and the transfer of knowledge and wealth from the West to the East,” he told state news agency IRNA. 

Jalalzadeh added, “BRICS and the Shanghai Cooperation Organization (SCO) are definitely a front against the excesses of the domination system, particularly America.”

Jalalzadeh emphasized that BRICS, Shanghai, and Eurasia are the code names for the failure of Western sanctions.

“The neutralization of sanctions in the era of the formation of the new global geometry means the era of entering regional and international agreements, coalitions and unions. And this means the end of unilateralism,” he continued.

Hossein Qaribi, Iranian Ambassador to Brazil, has also said that Iran’s BRICS membership was the result of months of intense diplomatic efforts by the Ebrahim Raisi administration.

“Iran's membership in the BRICS group is a happy event that is the result of months of efforts and intensive diplomatic measures by the 13th government, the Ministry of Foreign Affairs and the Iranian embassies in five member countries of that group,” Qaribi said in remarks to IRNA. 

He added, “Practically, the policy of strengthening multilateralism in the international system is better realized by advancing the goals of BRICS. In addition, it should be noted that the capacities that exist in the Islamic Republic of Iran will also be available to this group, and with development-oriented planning, it will lead to an increase in business interactions among its members.”

Foreign Minister Hossein Amir Abdollahian has lauded the bloc for deciding to move towards expansion. “In addition to strengthening multilateralism, the great success of accepting Iran’s membership in BRICS can provide the basis for the pursuit of goals and the development of other macro strategies of the government in the implementation of dynamic diplomacy,” the top diplomat wrote on X.

During a BRICS summit held in Johannesburg, South African President Cyril Ramaphosa announced the BRICS member states have agreed to admit Iran, Argentina, Egypt, Ethiopia, the UAE and Saudi Arabia as full members. That means the bloc currently consisting of Brazil, Russia, India, China and South Africa, will double in the number of members as of the beginning of next year.

Iranian President Ebrahim Raisi who had traveled to South Africa to attend the summit called the advantages of Iran's membership in the bloc “history-making”. 

“Strategic cooperation between Iran and BRICS members in the fields of transit, energy, and trade, will support the BRICS global agenda. The Islamic Republic of Iran strongly supports the successful efforts of BRICS in the path of de-dollarization of economic relations between members, the use of national currencies, as well as the strengthening of BRICS mechanisms for payment and financial settlement,” Raisi told the BRICS summit.

 

Iran oil income reported by EIA at US$54 billion for 2022

According to a report by the US Energy Information Administration (EIA), Iran’s oil revenues in 2022 were reported at US$54 billion, up $17 billion from the country’s oil income in 2021.

The EIA’s report also put the Islamic Republic’s oil revenue in the first five months of 2023 at US$19 billion.

Back in January, the EIA in a report put Iran’s average oil production in 2022 at 2.54 million barrels per day (bpd), 140,000 bpd more than the previous year.

In late April, the European Union's statistics office Eurostat announced the import of Iranian oil by three European Union (EU) members in 2022, and introduced Bulgaria as the newest customer for Iranian oil in this union.

The information published by Eurostat shows that the European Union imported 4,181 tons of crude oil or oil products from Iran last year.

Although the amount of EU oil imports from Iran is not a significant figure, it indicates the desire of European refineries to ignore the US sanctions against Iran, and the inclusion of these figures in the official European oil import statistics shows the desire of the European authorities to distance themselves from the sanctions, or at least showing their objection to the US sanctions policy against Iran.

Iranian President Ebrahim Raisi has said that the oil and gas sector experienced a growth of nine percent in the past Iranian calendar year 1401.

Oil Minister Javad Oji has also said that a new record high will be reached in the country’s oil export in the current Iranian calendar year.

The country’s oil export in 1401 was 83 million barrels more than that of year 1400 and 190 million barrels more than the export in year 1399, the minister announced.

Underlining that now oil export has reached the highest figure in the last two years, the official said, “Considering that the Oil Ministry is one of the main providers of the country's foreign currency; in the 13th government, despite the tightening of cruel sanctions, fortunately, thanks to the grace of God and the efforts of our colleagues in the country's oil and gas industries, there are good records in the field of exporting crude oil, gas condensate, and petroleum and petrochemical products.”

Despite the negative impacts of the U.S. sanctions, Iran has been ramping up its oil production and exports over the past few months.

In his remarks in November 2022, President Raisi highlighted the failure of the enemy’s policy of maximum pressure, saying the country’s oil export has reached the pre-sanction levels.

 

OPEC to welcome Iran’s return to oil market

OPEC will welcome Iran’s full return to the oil market when sanctions are lifted, the secretary general of the Organization of the Petroleum Exporting Countries (OPEC) told the Iranian oil ministry's website SHANA on Monday.

Iran is an OPEC member, although its oil exports are subject to US sanctions aimed at curbing Tehran's nuclear program.

Secretary General Haitham Al Ghais, who is visiting Tehran for the first time, added that Iran has the capacity to bring on significant production volumes within a short period of time.

"We believe that Iran is a responsible player amongst its family members, the countries in the OPEC group. I’m sure there will be good work together, in synchronization, to ensure that the market will remain balanced as OPEC has continued to do over the past many years," SHANA's English-language website cited him as saying.

Asked about OPEC’s voluntary production cut and its effect on oil prices, Ghais said, "In OPEC...we don’t target a certain price level. All our actions, all our decisions are made in order to have a good balance between global oil demand and global oil supply."

In a surprise move in early April, Saudi Arabia and other members of OPEC Plus, which comprises OPEC and allies including Russia, announced further oil output cuts of around 1.2 million barrels per day, bringing the total volume of cuts by OPEC Plus to 3.66 million barrels per day, according to Reuters calculations.

Saudi Arabia, the kingpin of OPEC, and Iran announced in March that they would restore diplomatic relations after years of hostility, in a deal brokered by China, the world's second largest oil consumer.

Iran: IMF sees a positive outlook in 2023

Drawing a positive outlook for the Iranian economy in 2023, the International Monetary Fund (IMF) has predicted that 10 major indicators of the Iranian economy would experience growth and improvement in the forthcoming year as compared to 2022.

IMF has announced that Iran's foreign currency reserves are more than US$120 billion, but it claims that Iran has access to only a small part of these reserves due to the US sanctions.

According to the IMF data, Iran's Gross Domestic Product (GDP) based on the purchasing power index will grow by US$91 billion or two percent in 2023 to reach US$1.7 trillion.

Meanwhile, Iran's GDP per capita is also expected to increase by US$865 based on the purchasing power index to reach US$19,528 in 2023 from US$18,663 in 2022.

IMF sees Iran's GDP excluding oil grow by 2% in 2023, and the growth of the country’s economy including oil will be 2.1% this year.

The inflation rate in Iran is predicted to be 40% in 2023, registering no change as compared to 2022.

The International Monetary Fund expects the rate of the country’s liquidity growth to slow down in 2023. The liquidity growth that reached 47.5% of GDP in 2022 will decrease to 45.6% in 2023.

The budget deficit of the Iranian government in 2023 will reach 6% of GDP, which is 1.8% higher than the figure for 2022.

The Iranian government’s total revenues will not change in 2023 as compared to the previous year. The Iranian government’s income in 2023 is estimated to be 8.3% of the GDP, registering no change compared to the previous year. However, the government's non-oil incomes will increase from 7.4% of GDP in 2022 to 7.5% of GDP in 2023.

Based on the IMF data, the downward trend of the Iranian government's gross debt will continue in 2023 to settle at 31.9% of the GDP this year.

The fund also predicts Iran's current account balance to be US$30.2 billion in 2023. Iran's current account balance in 2022 is estimated at more than US$32 billion.

Based on the referred data, Iran's foreign currency reserves increase by more than US$11.4 billion in 2023 and reach US$42.2 billion. Iran's available foreign currency reserves in 2022 are estimated at US$30.8 billion.

According to the estimate of the International Monetary Fund, Iran's foreign debt in 2022 will be equal to 0.5% of the GDP and it is expected that this figure will remain the same in 2023.

 

US sanctions prevent ships from reaching Iran

According to a Reuters report dozens of merchant ships carrying grain and sugar are stuck outside Iranian ports due to payment issues as a result of Western sanctions.

While United States and other Western sanctions technically have exemptions for food and other humanitarian goods, the Reuters report said the impact of the sanctions on Iran’s financial system have created complex and erratic payment arrangements with international companies.

The ships cannot enter Iran due to payment issues. The payment issues have left 40 ships stuck outside Iranian ports, which are estimated to be holding about US$1 billion worth of cargo.

Iran's Ports and Maritime Organization said in a report in November that some 37 ships loaded with 2.2 million tons of goods had not been able to unload due to "documentation and hard currency payment issues at Bandar Imam Khomeini.

Iran is expected to import 5.5 million tons of wheat in the 2022-23 season, down from 8 million in the prior season but still well above normal levels, based on the US Department of Agriculture data.

Alena Douhan, a UN special rapporteur, issued a report in September detailing how the US and other Western sanctions harm Iranians.

She said since US sanctions were reimposed in 2018, food insecurity has soared in Iran, reaching 60% in certain areas.

Douhan said that the sanctions have severely undermined the delivery of medicine and medical goods to Iran.

She said that licenses that are supposed to be issued by the US Office of Foreign Assets Control to ensure exemptions appeared to be ineffective and nearly non-existent.

There’s no sign that US sanctions on Iran will be lifted anytime soon, as video surfaced of President Biden saying the Iran nuclear deal, known as the JCPOA, is dead. 

Since JCPOA talks fell apart in September, the US has increased sanctions on Iran.

Hassan Nasrallah Messiah for Lebanese

In the recent past Lebanon has faced multiple domestic crises. At present one of the biggest challenges facing the country is the unprecedented energy crisis that is literally suffocating a nation struggling to keep the light on. 

This crisis got worse, on the verge of reaching a point where hospitals, shops, bakeries, etc. cannot function because of a lack of fuel. Lebanon was heading towards the unknown. 

Hezbollah devised a plan to alleviate the crisis, while preventing any foreign interference or trouble for Lebanon. 

After careful consideration, Secretary General of Hezbollah, Hassan Nasrallah and other high ranking officials in the movement decided to purchase oil from the Islamic Republic of Iran and bring the oil tankers to Lebanon itself. 

Hezbollah chief said, after being told of possible sanctions or other measures by the United States that could hurt the government if the tankers docked in Lebanon; it decided to dock the first vessel in neighboring Syria and take the cargo by land across Lebanese-Syrian border crossing. 

Nasrallah extended his gratitude to the Syrian government for helping coordinate the logistics of importing this vital commodity. He thanked the Syrian government for understanding the situation of Lebanon and the dangers of Lebanese and Syrian enemies in trying to harm Damascus for the assistance it provided.

The vessel was expected to dock at Syrian seaport by Sunday and the process of unloading and dispatching fuel to Lebanon was has to be completed by Thursday. Hezbollah said, this is the first of many ships to bring oil from Iran to Lebanon.

According to Nasrallah, the negative statements were the following and he noted how they ended up in dustbin of history. 

One: The announcement of importing oil from Iran was just a stunt. However, the oil has arrived.

Two: Those who said the operation will fail because Iran itself has problems exporting gasoline and diesel. 

Three: Those who stated Israel will prevent the tanker from reaching Lebanon or Syria, especially because Hezbollah announced the move publicly on the day of Ashura. It wasn’t a secret operation.

Nasrallah believes it's unfortunate that some had hoped Israel would prevent the ship from reaching Lebanon. 

He highlighted that the 2006 war which created a security equation with Israel is what prevented the regime from stopping the fuel from arriving. This is despite the fact that Tel Aviv is very well aware the arrival of the fuel would increase Hezbollah’s popularity even more, something Israel has, for decades, tried to prevent.

Four: Those who said America will prevent this operation. Nasrallah noted the US knew any action would lead to a reaction “from a certain party”.

The Hezbollah chief said, the US only knows sanctions, tried to pressure Lebanese officials and when that did not work, the US embassy in Beirut presented an alternative plan.

The US plan had already been widely ridiculed among Lebanese commentators and analysts. 

Those who said the import of oil would cause problems for the new government and this never happened.

Five: Finally, those who said this was a sectarian move and the energy would only be distributed to Hezbollah strongholds in Southern Lebanon. Nasrallah said, oil would be sent to every region of Lebanon.

In the upcoming days, the second ship will dock in Syria and will also contain diesel.

A third ship has been loaded with gasoline and the paperwork has been completed for it to sail. The fourth tanker will contain diesel.

The fourth ship will contain diesel because it will arrive at a time when some areas of Lebanon get cold and more diesel is needed than gasoline. 

The Hezbollah chief reiterated the movement is not after trade and profit or competing with energy companies. The initiative is simply adding to a product short in supply. 

Nasrallah studied the distribution process from a humanitarian point of view and came up with the following.

A months’ worth of supply will be offered, free of charge, to government-run hospitals, centers that care for the elderly and vulnerable, every facility that cares for orphans, water facilities in poorer provinces, fire stations, the Lebanese Red Cross. 

The reality of this humanitarian mission cannot be emphasized enough when Hezbollah says it is offering the diesel to the above free of charge. 

The second list will be sold, but also in terms of priority, to those that need the energy most and at a reasonable price whereby other energy supplier’s businesses are not affected. 

Private hospitals, pharmaceutical manufacturers, mills, bakeries selling bread, companies purchasing, storing and selling vital food products, food manufacturers, and agricultural companies remain top priority. Among those also considered high-priority, that will be offered the diesel, are electricity companies who provide generators to help people with power outages. 

According to the Hezbollah Chief, the oil will not be sold to individuals, but he did leave this door open when the suffering among the priority lists is gone. 

A Lebanese company has been chosen to assist and Hezbollah says this company has been chosen because it is suffering under US sanctions. 

Nasrallah added this commodity is for all Lebanese, regardless of faith or political allegiance. It will be sent to every province in the country. 

Every effort will be done to prevent the oil from entering the black market “because the black market has already profited significantly”.

Hezbollah says this operation will hopefully break the black market, which is selling oil at unreasonable prices and hurting ordinary Lebanese waiting in line for hours. 

Hezbollah said, it will not consider the import costs of the oil tankers when it sells the oil. The movement says it will bear responsibility for these costs and says it doesn’t want to make a profit.

The Hezbollah Chief said, the movement wants this initiative to be considered as a gift to Lebanese people from the Islamic Republic of Iran and from Hezbollah. 

Nasrallah said, Hezbollah won’t use the dollar to sell any of the oil imports. Any fuel sold will be done using the Lebanese Lira. 

Hezbollah could have imported a flotilla of oil tankers and not begin with one ship. He pointed out this would have led to extensive media speculation about the whereabouts of the ships and when they will arrive; something that would have boosted Hezbollah’s popularity. 

The Hezbollah chief said, “We could have done that with the first tanker”. However, the moment chose to keep a low profile because it didn’t want to frighten the Lebanese people, especially when there are officials and enemies scaremongering the public. 

Hezbollah’s goal is easing the suffering of the people, serving the Lebanese nothing more, nothing less.

Iranian exports to India up 240% during March-June 2021 quarter

According to Iranian Trade Promotion Organization (TPO), the value of country’s exports to India has risen 240% during March-June 2021 quarter, as compared to the same period last year.

Reza Seyed Aqazadeh, the Director General of the TPO’s Asia and Pacific Office, said, “In the first quarter of the current year, India was our fifth largest export market, accounting for about 3.2% of our exports. In terms of imports, India was the sixth largest supplier to the Iranian market, accounting for 2.5% of the Iran’s imports.”

“In the previous year, when the coronavirus outbreak led to the closure of roads and the semi-closure of offices, this situation affected trade between Iran and India and reduced our trade relations; but in the first quarter of this year communication increased dramatically, compared to the first quarter of the past year as the roads were closed”, he added.

Regarding the preferential trade agreement between the two countries, he said, "The most important issue that we are working on within the framework of the TPO’s plans in order to increase and develop trade is the preferential tariff agreement.”

“Many of the goods we export to India have a very good capacity in this country; there is good demand and we can have a good development in increasing exports to India”, the TPO official said, adding, “In general, it can be said that there is an export capacity of more than US$25 billion to India.”

Back in early May, during an online meeting between TPO Head Hamid Zadboum and Indian Ambassador to Tehran Gaddam Dharmendr, the two sides had expressed dissatisfaction with the current levels of trade between the two countries and called for serious measures to be taken for reviving the mutual economic exchanges.

Speaking in the meeting, Zadboum stressed the need to remove barriers to mutual trade and find new ways to develop trade relations between the two countries.

The official noted that the two sides should resume discussion on the preferential trade agreement and exchange the list of commodities that are going to be included in this agreement. He also noted that the necessary measures should be taken to bring back petrochemical, industrial, and steel commodities into the basket of Iranian exports to India.

In this regard, the two sides agreed to work on the raised issues and implement them as soon as possible.

The officials also concluded to make necessary coordination for officials of health, customs and standards organizations of the two countries to meet through video conference in near future to resolve problems and enhance mutual cooperation.

At the end of the meeting, the two sides stressed the two countries' determination to develop and improve economic and trade relations and agreed to discuss and implement the issues through video conferencing, to prepare the condition for face-to-face meetings after the pandemic is over.

India is the only foreign country that is currently participating in a major development project in Iran despite the US sanctions.

The Chabahar Port development project is the anchor for the expansion of economic relations between the two nations.

India is going to install and operate modern loading and unloading equipment including mobile harbor cranes in Shahid Beheshti Port in Chabahar.

The strategic port in southeastern Iran is the only ocean port on the Makran coast and it has a special place in the country's economic affairs.

Iran drills 117 oil and gas wells in first 10 months of current calendar year

National Iranian Drilling Company (NIDC) has completed drilling of 117 oil and gas wells during the first nine months of the current Iranian calendar year. Managing Director of the company, Abdollah Mousavi said the drilled wells consisted of 27 development wells, one appraisal well, 85 workover wells and four exploratory wells.

The official stated that during this period, 18 wells were drilled 326 days earlier than the schedule and handed over to the applicant company for operation, adding that the early production of the wells, rig clearance, and cost reduction, which are resulted through cooperation between the experts of NIDC and the operating company, is economically viable significantly.

After the US re-imposed sanctions on Iran, indigenizing the know-how for the manufacturing of the parts and equipment applied in different industrial sectors is one of the major strategies that the Islamic Republic has been strongly following up to reach self-reliance and nullify the sanctions.

Oil, gas and petrochemical industries have achieved outstanding performances due to indigenizing of the knowledge for manufacturing many parts and equipment that were previously imported. Among different sectors of the mentioned industries, drilling could be mentioned as a prominent example in this regard.

NIDC managed to indigenize the knowledge for manufacturing 6,000 drilling equipment in collaboration with domestic manufacturers and engineers in the previous Iranian calendar year.

Before this success, the technology for manufacturing the mentioned equipment was in the possession of a handful of foreign companies.

The equipment indigenized by NIDC includes drilling mud pumps, blowout preventers, traction motors, draw-works, drilling fluid recycling systems, mission centrifugal pumps, top drives, and drilling rig slow circulation rate pressure systems.

The company has also managed to indigenize the know-how for manufacturing 242 parts highly-applied in the drilling industry during the first half of the current Iranian calendar year.

In order to indigenize the technology to manufacture these parts, NIDC inked six research deals with domestic universities and knowledge-based companies.

At the beginning of the current Iranian year, NIDC managing director had said that his company’s performance will be more outstanding in this year, which is named the year of surge in production.

The official’s saying has already come true, as his company managed to indigenize the know-how for manufacturing some significant parts, and also in completing the digging operations sooner than the schedule.

NIDC accounts for a major part of drilling exploration as well as appraisal/development wells in Iran. It holds 70 onshore and offshore drilling rigs as well as equipment and facilities for offering integrated technical and engineering services.