Iran bases its 2022 budget on $60 oil

(Bloomberg) --The budget bill for Iran’s next calendar year is based on an oil price of $60 a barrel, up from $40 this year, the semi-official Fars news agency reported.

The country expects to export around 1.2 million barrels of oil daily in the year that starts on March 21, Fars reported, according to outlines of the country’s proposed budget for next year. This calendar year it was projected to export up to 1.5 million barrels a day, but in practice U.S. sanctions have squeezed that to under 1 million, analysts have said. 

Iranian President Ebrahim Raisi presented his administration’s first annual budget bill to parliament on Sunday. The bill requires parliamentary review and approval.

Sanctions reinstated on Iran in 2018 by former U.S. President Donald Trump have battered the country’s economy, chiefly by curtailing Iran’s oil exports, its biggest source of revenue. Tehran and world powers are engaged in talks to resuscitate the 2015 nuclear deal that Trump withdrew from, which traded sanctions relief for curbs on Iran’s atomic activities.