US sanctions are chasing Iran's petrochemicals

The US sanctions on the Iranian petrochemical sector come within the framework of tightening the blockade on Tehran's windows to obtain foreign exchange.

The United States of America, with the sanctions it imposed on Iran, targets the petrochemical window that helps Tehran overcome its foreign exchange shortage crisis.

This comes after Tehran succeeded in increasing the volume of its revenues from petrochemical sales in foreign markets, which prompted it to focus on developing this sector and seeking to attract regional investments that would help it overcome the effects of Western sanctions imposed on its domestic economy.

Iranian petrochemical exports

The Director of Planning and Development at the National Petrochemical Company “NBC”, Hassan Abbaszadeh, announced that Iranian petrochemical exports achieved a significant jump in revenues during the past 11 months of the Iranian fiscal year (which began on March 21, 2022).

Iranian petrochemical exports

According to a TAQA report on February 28, Iranian petrochemical exports account for 25% of the market in the region, and account for 2.5% of the global petrochemical market.

The global demand for Iranian petrochemical exports is increasing, with the high demand for polymer products, which are used in multiple industries.

gasoline exporting

Iran is preparing to enter the gasoline exporting market, through the construction of the new “Mehre Al-Khaleej” refinery, which would raise domestic production and contribute to increasing the quantities to be exported.

Iran needs 100 million liters of gasoline per day for domestic consumption, 45% of which is produced at the Gulf Star refinery.

The new refinery stands out as an important solution to the fuel crisis in Iran, especially since the demand for gasoline has risen to record levels in recent weeks, in light of a major crisis hitting the country, with the inability to meet internal needs.

Targeting petrochemicals with sanctions

The United States of America is targeting the petrochemical sector, which helps Iran to provide its foreign exchange needs, with sanctions. It has listed the names of 9 Iranian, Singaporean and Malaysian companies involved in selling the leading petrochemical products in Tehran.