Insight
Iran sanctions: how quickly can oil production be restored?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The election of Joe Biden as US President in January 2021 has increased anticipation of a return to the Iran nuclear deal and lifting of US sanctions. There are several obstacles to achieving this, including Iran’s presidential elections in June 2021. A deal before this looks increasingly unlikely, as Iran continues to diverge from the nuclear compliance it adhered to under the agreement. The new US administration has stated it is prepared to re-join the deal and start lifting sanctions if Iran returns to full compliance, but with Iran waiting for the US to make the first move, a stand-off ensues. Our base case assumes sanctions remain in place until 2025. We explore how quickly Iran can ramp-up production after sanctions are lifted and the impact on the oil market if sanctions are lifted sooner.
Table of contents
- Uncertain path to lifting of sanctions
- Stand-off thwarts next steps
- What does it mean for oil supply?
- Maximum exports will be key to boost revenues
- What is the impact if sanctions are lifted earlier?
- Moderate market impact as gains absorbed by rising demand
- One million b/d of oil production could rebound within six months
Tables and charts
This report includes the following images and tables:
- Iran long-term liquids capacity with assumption sanctions lifted in 2025
- Iran short term oil supply scenarios
- Implied stock change (Million b/d)
What's included
This report contains:
Other reports you may be interested in
Insight
Strait of Hormuz: assessing the risk for oil trade flows
Using waterborne data to assess oil exports at risk in the Gulf
$1,350
Insight
Israel – Iran conflict: implications on the global LNG market
Following a large-scale Israeli attack on Iran, tensions escalate with significant consequences for global oil and gas markets.
$950
Insight
Uncertainties, risks, rewards and regional conflicts in the Middle East
Trade frictions and geopolitical tensions are reshaping upstream risk across the Middle East. Who’s best positioned to adapt?
$1,350
