50% Increase in U.S. Exports to Iran in the First Half of 2018

The latest monthly report from the U.S. Census Bureau, published on Saturday, August 4, indicates that the U.S. exported approximately $60 million to Iran in the first half of 2018, reflecting a 50% increase compared to the same period last year. However, Iran's exports to the U.S. during this time saw a slight decrease, amounting to about $35 million. The U.S. primarily exports agricultural and medical products to Iran, while traditional Iranian exports to the U.S. include carpets and pistachios; however, the U.S. recently banned carpet imports from Iran. The United States withdrew from the nuclear agreement with Iran in May of this year and reinstated financial sanctions that began on Saturday, along with oil sanctions that will be implemented in three months. Nevertheless, U.S. exports to Iran have not changed significantly since the exit from the JCPOA, and contrary to expectations, Iran's exports to the U.S. have even increased. Meanwhile, a new report from Iranian customs indicates that Iran's total non-oil exports in the first four months of the current year increased by 15%, while the country's imports decreased by 4%. According to customs statistics published on its official website, Iran's non-oil exports from March 21 to July 22 reached $13 billion and 471 million. However, a significant portion of what Iran counts as 'non-oil exports' is actually raw oil products. For example, only gas condensates (a type of light crude oil produced from gas fields), propane, butane, and other heavy raw gases make up nearly a quarter of Iran's total non-oil exports. Besides the items listed in the non-oil export basket, Iran also exports crude oil, oil products (diesel and fuel oil), and natural gas (methane). According to National Oil Company statistics, Iran has exported an average of 2.3 million barrels of crude oil daily in the first four months of this year, reflecting a 7% increase compared to the same period last year. The price of oil has also increased by about 30% in the first four months of this year compared to the same period last year. The main destinations for Iran's non-oil exports are China, the United Arab Emirates, Iraq, South Korea, and Afghanistan. Customs statistics from the Islamic Republic indicate that the country's imports also decreased by 4% during this period, reaching $15 billion and 179 million. The main imported goods include agricultural products, auto parts, and mobile phones. Thus, Iran's non-oil trade balance has been positive in the first four months of the year. In addition to these goods, Iran also imports gasoline. The main exporting countries to Iran are China, the United Arab Emirates, South Korea, India, and Germany.