Iran says it sold $18 billion worth of oil during the war and the now-collapsed ceasefire, even as the conflict drove up energy, transport, and insurance costs across the global economy.
The war has disrupted shipping routes, lifted oil prices, and forced companies around the world to absorb billions of dollars in additional costs. Iran, however, says it continued generating substantial oil revenue throughout the conflict.
Iranian Oil Minister Mohsen Paknejad said the country sold $11.5 billion worth of oil during the fighting and another $6.5 billion during the ceasefire period.
The combined $18 billion represented more than 60 percent of the petroleum revenue projected in Iran’s annual state budget, according to the minister. The figures are Iranian government claims and have not been independently verified.
The war began on February 28. A ceasefire took effect on April 7 before being declared over on July 10, marking a return to open hostilities.
Lower Tanker Risks Helped Iran Release Stored Oil
The ceasefire gave Iran a temporary opening to increase exports as security risks facing tanker traffic declined.
Paknejad said the calmer conditions allowed the country to sell part of approximately 100 million barrels of crude oil and gas condensate that had accumulated in onshore facilities and floating storage.
This did not mean the war itself created Iran’s oil income. Petroleum was already one of Tehran’s main sources of state revenue.
Instead, the figures suggest that Iran maintained sales during the conflict and then used the period of lower shipping risk to move some of the reserves that had been waiting for access to international markets.
Paknejad had previously said that oil exports continued during the fighting and that part of the proceeds would be used to repair industrial facilities damaged by attacks. He also claimed that Iranian crude had been selling at significantly higher prices.
Global Companies Face a Larger Bill
Iran’s reported sales contrast with the financial damage recorded elsewhere in the global economy.
A Reuters review published in May found that the war had already cost companies worldwide at least $25 billion. The analysis covered statements from 279 businesses in the United States, Europe, and Asia that reported higher energy prices, interrupted supply chains, production cuts, price increases, or other defensive measures.
Airlines alone accounted for nearly $15 billion of the quantified costs as jet fuel prices climbed. Manufacturers also faced more expensive petrochemicals, raw materials, and freight.
The two figures are not directly comparable. Iran’s $18 billion represents the gross value of reported oil sales, while the $25 billion figure measures additional costs reported by companies.
Nevertheless, the comparison illustrates the uneven economic effects of the war: Iran continued selling its principal export commodity while businesses and consumers elsewhere paid more to obtain, transport, and insure energy.
Longer Routes, Higher Costs
The conflict has placed particular pressure on the Strait of Hormuz and the Bab el-Mandeb Strait, two of the world’s most important routes for oil shipments.
Disruptions have forced some exporters to consider longer alternatives. Transporting Saudi oil from the Red Sea to Asian markets via the Suez Canal and around the Cape of Good Hope, for example, extends a journey from around 19 days to 48 days.
Reuters calculated that fuel costs for such a voyage could rise from approximately $1.26 million to $2.87 million. Passing through the Suez Canal could add another $1 million in fees.
The pressure returned sharply after the ceasefire collapsed. On July 23, Brent crude settled above $100 a barrel for the first time since May and stood nearly 40 percent higher than when the war began in February.
Sales Are Not the Same as Profit
Iran’s reported $18 billion should not be presented as the country’s net profit from the war.
The amount does not account for production expenses, discounts offered to buyers, disrupted exports, damaged infrastructure, military spending, or the wider impact of the conflict on Iran’s economy.
Nor does the available information show how much of the oil would have been sold under normal conditions.
What the figures demonstrate is narrower but still significant: despite sanctions, military pressure, and severe disruption to regional shipping, Tehran says it converted oil exports and accumulated reserves into revenue equal to more than half of its annual budget target.
For much of the world, the war has meant higher prices and longer trade routes. For Iran’s government, oil has remained a critical source of cash.