Iran is facing renewed economic pressure as the United States expands sanctions targeting Tehran's economy and trade networks. In the port city of Bandar Abbas, businesses and residents are grappling with rising costs, currency volatility, and growing uncertainty. Despite the pressure, Iran says it can withstand the sanctions and continue trading with key partners such as China and Russia. Meanwhile, tensions surrounding the Strait of Hormuz remain a major concern for global energy markets and international shipping routes. How will the latest sanctions impact Iran's economy and the wider region? 

US sanctions on Iran have curtailed oil imports

Pakistan has announced that it will be buying cheap Russian oil to cushion the current energy crisis that emanated due to the balance of payment crisis.

Pakistan has also been unable to procure oil after the banks refused to settle letters of credit (LCs) for the import of crude and petroleum products. The country’s foreign exchange reserves have lately depleted to about $4.6 billion, barely enough to cover three weeks of imports — mostly for oil.

Russian Energy Minister Nikolay Shulginov, who is in Islamabad for the annual inter-governmental commission on trade and economy, said that they are in the final stages of the agreement and added that the oil exports will begin by end of March.

He further announced that the payments will be made in the “currencies of friendly countries," without elaborating on which currency would be used.

"We have already decided to draft an agreement to sort out all the issues that we have with regard to transportation, insurance, payments and volumes. These issues are in the final stage of the agreement," Shulginov said in a statement on Saturday.

"We have already established a timeline of this agreement by the end of March," the Russian minister added.

The development comes at a time when the Group of 7 (G7) countries are reviewing the price cap on exports of Russian oil. They are scheduled to meet in March.

Earlier in December, the Pakistani government announced that Russia had agreed to export oil to the energy-starved country at a reduced price.

In an interview to Geo News TV later in the day, Pakistani junior oil minister Musadik Malik said that the country is looking to 35 per cent of its total crude oil requirement.

"If we have dollars in excess, then we are ready to do the trade in dollars, and if there is a shortage of dollars and we have some other currency in our reserves, we are ready to trade in that.”

"All these things will be finalised in the next 60 days, so that by the end of March the oil supply starts from&nbsp;Russia."

Oil takes the lion's share of Pakistan’s import bill. Islamabad has traditionally been importing&nbsp;from Saudi Arabia and the United Arab Emirates. This is the first time they would be procuring Russian oil.

(With inputs from agencies)

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Pakistan has announced that it will be buying cheap Russian oil to cushion the current energy crisis that emanated due to the balance of payment crisis. Pakistan has also been unable to procure oil after the banks refused to settle letters of credit (LCs) for the import of crude and petroleum products.

Pakistan has announced that it will be buying cheap Russian oil to cushion the current energy crisis that emanated due to the balance of payment crisis. Pakistan has also been unable to procure oil after the banks refused to settle letters of credit (LCs) for the import of crude and petroleum products. The country’s foreign exchange reserves have lately depleted to about $4.6 billion, barely enough to cover three weeks of imports — mostly for oil. Russian Energy Minister Nikolay Shulginov, who is in Islamabad for the annual inter-governmental commission on trade and economy, said that they are in the final stages of the agreement and added that the oil exports will begin by end of March. He further announced that the payments will be made in the “currencies of friendly countries," without elaborating on which currency would be used. "We have already decided to draft an agreement to sort out all the issues that we have with regard to transportation, insurance, payments and volumes. These issues are in the final stage of the agreement," Shulginov said in a statement on Saturday. "We have already established a timeline of this agreement by the end of March," the Russian minister added. The development comes at a time when the Group of 7 (G7) countries are reviewing the price cap on exports of Russian oil. They are scheduled to meet in March. Earlier in December, the Pakistani government announced that Russia had agreed to export oil to the energy-starved country at a reduced price. In an interview to Geo News TV later in the day, Pakistani junior oil minister Musadik Malik said that the country is looking to 35 per cent of its total crude oil requirement. "If we have dollars in excess, then we are ready to do the trade in dollars, and if there is a shortage of dollars and we have some other currency in our reserves, we are ready to trade in that.” "All these things will be finalised in the next 60 days, so that by the end of March the oil supply starts from Russia." Oil takes the lion's share of Pakistan’s import bill. Islamabad has traditionally been importing from Saudi Arabia and the United Arab Emirates. This is the first time they would be procuring Russian oil. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan to import cheap Russian oil, deal in ‘final stages’

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building.

Speaking in Jeddah ahead of a ministerial panel gathering on Sunday by top OPEC and non-OPEC producers, including Saudi Arabia and Russia, Falih told Reuters OPEC will not decide on output until late June when the group is due to meet.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1 for six months, a deal designed to stop inventories building up and weakening prices.

"We will be flexible. We are going to do the right thing as we always do," Falih said of any decision at the meeting in June on continuing the reductions.

Falih said OPEC is guided by two main principles: "One to keep the market in its direction towards balancing and inventories back to normal level. And two to be responsive to market needs. We will strike the right balance I am sure."

OPEC's agreed share of the cuts is 800,000 bpd, but its actual reduction is far larger due to the production losses in Iran and Venezuela. Both are under US sanctions and exempt from the voluntary reductions under the OPEC-led deal.

US President Donald Trump has called on OPEC and the group's de facto leader, Saudi Arabia, and asked them to lower oil prices. Riyadh, however, is reluctant to boost supply quickly and risk a price crash.

Sunday's ministerial panel meeting, known as the JMMC, comes amid concerns of a tight market as Iran's oil exports are likely to drop further in May, and shipments from Venezuela could fall more in coming weeks due to the sanctions by Washington.&nbsp;

Oil contamination also forced Russia to halt flows along the Druzhba pipeline - a key conduit for crude into Eastern Europe and Germany - in April. The suspension, as yet of unclear duration, left refiners scrambling to find supplies.

"I am not sure there is a supply shortage, but we will look at the (market) analysis. We will definitely be responsive and the market will be supplied," Falih said.

"All indications are that inventories are still rising. We saw the data from the US week after week, and they are massive increases, so obviously (there is) supply abundance."

US crude inventories rose unexpectedly last week to their highest since September 2017, while gasoline stockpiles decreased more than forecast, the Energy Information Administration (EIA) said on Wednesday.

An OPEC and the non-OPEC technical committee found that oil producers' compliance with the supply-reduction agreement reached 168% in April, three sources told Reuters on Saturday.

The committee known as the JTC met ahead of the JMMC gathering to discuss the oil markets.

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building.

Saudi Arabia's Energy Minister Khalid al-Falih said on Saturday that OPEC will be responsive to the oil market's needs, but that he was not sure there is an oil shortage with data, particularly from the United States, still showing inventories building. Speaking in Jeddah ahead of a ministerial panel gathering on Sunday by top OPEC and non-OPEC producers, including Saudi Arabia and Russia, Falih told Reuters OPEC will not decide on output until late June when the group is due to meet. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce output by 1.2 million barrels per day (bpd) from Jan. 1 for six months, a deal designed to stop inventories building up and weakening prices. "We will be flexible. We are going to do the right thing as we always do," Falih said of any decision at the meeting in June on continuing the reductions. Falih said OPEC is guided by two main principles: "One to keep the market in its direction towards balancing and inventories back to normal level. And two to be responsive to market needs. We will strike the right balance I am sure." OPEC's agreed share of the cuts is 800,000 bpd, but its actual reduction is far larger due to the production losses in Iran and Venezuela. Both are under US sanctions and exempt from the voluntary reductions under the OPEC-led deal. US President Donald Trump has called on OPEC and the group's de facto leader, Saudi Arabia, and asked them to lower oil prices. Riyadh, however, is reluctant to boost supply quickly and risk a price crash. Sunday's ministerial panel meeting, known as the JMMC, comes amid concerns of a tight market as Iran's oil exports are likely to drop further in May, and shipments from Venezuela could fall more in coming weeks due to the sanctions by Washington. Oil contamination also forced Russia to halt flows along the Druzhba pipeline - a key conduit for crude into Eastern Europe and Germany - in April. The suspension, as yet of unclear duration, left refiners scrambling to find supplies. "I am not sure there is a supply shortage, but we will look at the (market) analysis. We will definitely be responsive and the market will be supplied," Falih said. "All indications are that inventories are still rising. We saw the data from the US week after week, and they are massive increases, so obviously (there is) supply abundance." US crude inventories rose unexpectedly last week to their highest since September 2017, while gasoline stockpiles decreased more than forecast, the Energy Information Administration (EIA) said on Wednesday. An OPEC and the non-OPEC technical committee found that oil producers' compliance with the supply-reduction agreement reached 168% in April, three sources told Reuters on Saturday. The committee known as the JTC met ahead of the JMMC gathering to discuss the oil markets.

Oil stocks still building, but OPEC to act if needed: Saudi Arabia's Energy Minister

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