Amid rising prices of many agricultural goods, the Iranian Ministry of Industry, Mining and Commerce’s ban on the export of potatoes and onions will come into effect today.
US sanctions against Iran have taken a toll on the country. As oil exports have dropped, inflation has soared to near 40% while the rial has plummeted against the dollar, causing shortages and price hikes of crucial goods.
Despite EU efforts to circumvent US sanctions, European exports and imports from Iran have decreased 17% and 4%, respectively, since 2017. In recent weeks, rumours have swirled from the White House that additional sanctions could be implemented. This could look like the removal of waivers granted to certain countries that allow them to purchase Iranian oil.
Though this could cause short-term price volatility, American oil output has been surging and might compensate for a drop in Iranian oil on the market. With the 2020 election campaign entering its early stages, President Trump might try to get a big win on the international stage by forcing concessions from Iran through a campaign of maximum economic pressure.
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Max is Foreign Brief's Chief Executive Officer. A Latin America specialist, Max is an expert in regional political and economic trends, focusing particularly on the Southern Cone.