Can Tehran survive a ‘zero oil’ budget, if US blockade on Iran persists?

The Iranian government is facing severe economic challenges due to ongoing US sanctions and a naval blockade. As oil revenues plummet, officials are preparing for a potential zero-oil budget, which could lead to significant hardships for the Iranian populace. Economic experts warn that the situation could result in increased inflation and difficulties in maintaining essential services.

Iran's President Masoud Pezeshkian has acknowledged the dire circumstances but insists that the government is planning for various scenarios, including the possibility of breaking the blockade. The administration is focused on managing current expenditures and preventing a complete economic collapse, despite the grim outlook presented by US officials.

The blockade has drastically reduced Iran's oil production and exports, with reports indicating that production has fallen below 2 million barrels per day. The situation remains precarious, with predictions that Iran's oil income could reach zero, exacerbating the economic crisis and affecting the livelihoods of millions of Iranians.