This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/04/23/world/middleeast/iran-coronavirus-oil.html
The article has changed 24 times. There is an RSS feed of changes available.
| Version 12 | Version 13 |
|---|---|
| Cheap Oil Poses New Quandary for Iran as It Relaxes Virus Lockdown | Cheap Oil Poses New Quandary for Iran as It Relaxes Virus Lockdown |
| (8 days later) | |
| Selling Iran’s oil in defiance of an American embargo was already a risky and complicated venture for Iranian brokers. Then came the precipitous plunge in prices because of the global coronavirus clampdown, which has shriveled demand. | Selling Iran’s oil in defiance of an American embargo was already a risky and complicated venture for Iranian brokers. Then came the precipitous plunge in prices because of the global coronavirus clampdown, which has shriveled demand. |
| At first, Iranian brokers and many others in the country watched with amusement as U.S. oil prices briefly plunged below zero on Monday — meaning sellers had to pay buyers to take the oil away. Then on Tuesday the price of Brent crude oil, a benchmark blend that more directly affects Iran’s price, dropped to $20 a barrel, the lowest level in nearly two decades. | At first, Iranian brokers and many others in the country watched with amusement as U.S. oil prices briefly plunged below zero on Monday — meaning sellers had to pay buyers to take the oil away. Then on Tuesday the price of Brent crude oil, a benchmark blend that more directly affects Iran’s price, dropped to $20 a barrel, the lowest level in nearly two decades. |
| By Wednesday, Iranian oil brokers, who already sell at a discount to evade American sanctions, were nervously calibrating how far prices could drop before they would lose money. | By Wednesday, Iranian oil brokers, who already sell at a discount to evade American sanctions, were nervously calibrating how far prices could drop before they would lose money. |
| The oil market’s collapse this week was another unanticipated blow for Iran, where the authorities have struggled to contain the worst coronavirus outbreak in the Middle East while keeping afloat an economy that has long relied on oil exports but has been hampered by American sanctions. | The oil market’s collapse this week was another unanticipated blow for Iran, where the authorities have struggled to contain the worst coronavirus outbreak in the Middle East while keeping afloat an economy that has long relied on oil exports but has been hampered by American sanctions. |
| While Iranian leaders have significantly lessened their dependence on foreign purchases of Iran’s oil, it remains a basic industry for a country with the third-largest reserves among the Organization of Petroleum Exporting Countries. | While Iranian leaders have significantly lessened their dependence on foreign purchases of Iran’s oil, it remains a basic industry for a country with the third-largest reserves among the Organization of Petroleum Exporting Countries. |
| The price collapse has further complicated efforts by Iranian leaders to reopen the economy after a series of halting and sometimes contradictory moves to shutter businesses and ban travel in hopes of slowing the coronavirus contagion. On Saturday, the authorities began lifting those restraints, reopening shopping malls and Tehran’s famed bazaar, among other things. | The price collapse has further complicated efforts by Iranian leaders to reopen the economy after a series of halting and sometimes contradictory moves to shutter businesses and ban travel in hopes of slowing the coronavirus contagion. On Saturday, the authorities began lifting those restraints, reopening shopping malls and Tehran’s famed bazaar, among other things. |
| But Iranian health officials are worried, already seeing a surge in the number of people seeking hospital treatment for coronavirus symptoms. The head of Iran’s coronavirus relief committee, Alireza Zali, said hospital visits in Tehran alone rose 6 percent by midweek. | But Iranian health officials are worried, already seeing a surge in the number of people seeking hospital treatment for coronavirus symptoms. The head of Iran’s coronavirus relief committee, Alireza Zali, said hospital visits in Tehran alone rose 6 percent by midweek. |
| By official count, as of Thursday, more than 87,000 Iranians had been infected with the virus and 5,481 had died from Covid-19, the respiratory disease it causes. Those figures are widely believed to be undercounts. | By official count, as of Thursday, more than 87,000 Iranians had been infected with the virus and 5,481 had died from Covid-19, the respiratory disease it causes. Those figures are widely believed to be undercounts. |
| President Hassan Rouhani, who had argued that fighting the contagion and salvaging the economy go hand in hand, acknowledged on Wednesday that Iran would suffer from falling oil prices but played down the severity. | President Hassan Rouhani, who had argued that fighting the contagion and salvaging the economy go hand in hand, acknowledged on Wednesday that Iran would suffer from falling oil prices but played down the severity. |
| Falling oil prices “has created problems for all of us, even for us,” Mr. Rouhani said at a televised cabinet meeting. “Because our dependency on oil was reduced — by choice or not, willingly or enforced by the enemy — definitely our losses will be less. ” | Falling oil prices “has created problems for all of us, even for us,” Mr. Rouhani said at a televised cabinet meeting. “Because our dependency on oil was reduced — by choice or not, willingly or enforced by the enemy — definitely our losses will be less. ” |
| The oil ministry, through a handful of trusted brokers, sells its oil at about $10 below the Brent market price to create an incentive for buyers like China to risk evading sanctions. It costs Iran about $5.50 a barrel to produce crude oil. | The oil ministry, through a handful of trusted brokers, sells its oil at about $10 below the Brent market price to create an incentive for buyers like China to risk evading sanctions. It costs Iran about $5.50 a barrel to produce crude oil. |
| Oil revenue makes up about 10 percent of Iran’s budget. However, the budget for this fiscal year was set based on selling a million barrels of oil a day at about $50 per barrel. | Oil revenue makes up about 10 percent of Iran’s budget. However, the budget for this fiscal year was set based on selling a million barrels of oil a day at about $50 per barrel. |
| The combination of sanctions, shrinking demand for oil and falling prices has upended Iran’s budget planning. | The combination of sanctions, shrinking demand for oil and falling prices has upended Iran’s budget planning. |
| “It will cause a lot of rearranging of government financing, but it isn’t a final blow for the Iranian economy because it has been forced to adjust so severely over the past two years,” said Henry Rome, Iran analyst for the Eurasia Group, a political risk consultancy. | “It will cause a lot of rearranging of government financing, but it isn’t a final blow for the Iranian economy because it has been forced to adjust so severely over the past two years,” said Henry Rome, Iran analyst for the Eurasia Group, a political risk consultancy. |
| In March, during the height of the coronavirus crisis, one oil trader said, Iran’s oil sales had dropped from 300,000 barrels a day to 80,000. | In March, during the height of the coronavirus crisis, one oil trader said, Iran’s oil sales had dropped from 300,000 barrels a day to 80,000. |
| While Iranian leaders may be fretting about their own oil problems, they have taken pleasure in seeing what the price collapse has done to their main nemesis, the United States. | While Iranian leaders may be fretting about their own oil problems, they have taken pleasure in seeing what the price collapse has done to their main nemesis, the United States. |
| Playing on the Trump administration’s vow to eliminate Iran from the market as part of its “maximum pressure” policy, the front page of the conservative Kayhan newspaper on Wednesday read, “They wanted to reduce Iran’s oil sales to zero, but U.S. oil prices reduced to below zero.” | Playing on the Trump administration’s vow to eliminate Iran from the market as part of its “maximum pressure” policy, the front page of the conservative Kayhan newspaper on Wednesday read, “They wanted to reduce Iran’s oil sales to zero, but U.S. oil prices reduced to below zero.” |
| Other politicians minimized the threat to Iran’s economy. On the contrary, they said, it showed Iran’s resilience. | Other politicians minimized the threat to Iran’s economy. On the contrary, they said, it showed Iran’s resilience. |
| “The world is shocked because of the crashing oil prices due to the coronavirus,” said Iran’s deputy government spokesman, Mohammad Reza Noroozpour, in a tweet on Monday. “Let’s not forget that our government has managed the country without relying on oil revenues for two years.” | “The world is shocked because of the crashing oil prices due to the coronavirus,” said Iran’s deputy government spokesman, Mohammad Reza Noroozpour, in a tweet on Monday. “Let’s not forget that our government has managed the country without relying on oil revenues for two years.” |
| Iran is somewhat of an anomaly among oil rich countries such as Saudi Arabia and Algeria, whose economies are heavily dependent on oil. U.S. sanctions targeting Iran’s oil sales have forced it to find other sources of revenue, including higher taxes and privatization of government holdings. | Iran is somewhat of an anomaly among oil rich countries such as Saudi Arabia and Algeria, whose economies are heavily dependent on oil. U.S. sanctions targeting Iran’s oil sales have forced it to find other sources of revenue, including higher taxes and privatization of government holdings. |
| Since Washington imposed sanctions on Iran after President Trump renounced the nuclear accord negotiated by the Obama administration, Iran’s oil sales have dropped from 2.5 million barrels to about 300,000 barrels per day. | Since Washington imposed sanctions on Iran after President Trump renounced the nuclear accord negotiated by the Obama administration, Iran’s oil sales have dropped from 2.5 million barrels to about 300,000 barrels per day. |
| China also serves as a key partner for helping Iran keep its refineries and oil fields operational. Iran rents tanker farms offshore in China and stores the excess barrels of oil that it cannot sell, according to oil brokers in Iran. | China also serves as a key partner for helping Iran keep its refineries and oil fields operational. Iran rents tanker farms offshore in China and stores the excess barrels of oil that it cannot sell, according to oil brokers in Iran. |
| Mr. Rouhani has said that his government will face a budget deficit of one-third. Economists and analysts predict Iran’s economy will be further strained this year because of sanctions and the effects of the coronavirus. | Mr. Rouhani has said that his government will face a budget deficit of one-third. Economists and analysts predict Iran’s economy will be further strained this year because of sanctions and the effects of the coronavirus. |
| Updated June 30, 2020 | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| A telephone poll conducted this month by the Iranian Students Polling Agency showed the economic impact of the coronavirus pandemic on Iranians. Some 50.7 percent said their purchasing powers had shrunk, 41.7 percent said their businesses or source of income had shut down, and 13.5 percent said they had lost their jobs. | A telephone poll conducted this month by the Iranian Students Polling Agency showed the economic impact of the coronavirus pandemic on Iranians. Some 50.7 percent said their purchasing powers had shrunk, 41.7 percent said their businesses or source of income had shut down, and 13.5 percent said they had lost their jobs. |
| Iran has said U.S. sanctions have denied the country about $200 billion in revenue and have impeded its efforts to fight the virus. Iranian officials have lobbied to convince Washington to lift sanctions for humanitarian reasons, but so far Mr. Trump has not budged. | Iran has said U.S. sanctions have denied the country about $200 billion in revenue and have impeded its efforts to fight the virus. Iranian officials have lobbied to convince Washington to lift sanctions for humanitarian reasons, but so far Mr. Trump has not budged. |
| At the same time, Iran has remained defiant in resisting direct talks with Washington and continuing strategies deemed by the United States to be provocative. | At the same time, Iran has remained defiant in resisting direct talks with Washington and continuing strategies deemed by the United States to be provocative. |
| On Wednesday the elite Islamic Revolutionary Guards Corps launched a military satellite into orbit and said it was capable of both defense and collecting surveillance and imaging. A few days earlier, the Guards naval force approached a U.S. Navy ship in the Persian Gulf. | On Wednesday the elite Islamic Revolutionary Guards Corps launched a military satellite into orbit and said it was capable of both defense and collecting surveillance and imaging. A few days earlier, the Guards naval force approached a U.S. Navy ship in the Persian Gulf. |
| Mr. Trump reacted to the news of the satellite launch by tweeting that he had authorized the Navy to “shoot down” Iranian boats if they harass U.S. ships. | Mr. Trump reacted to the news of the satellite launch by tweeting that he had authorized the Navy to “shoot down” Iranian boats if they harass U.S. ships. |
| The Revolutionary Guards commander-in-chief, Gen. Hossein Salami, said on Thursday that Iran had ordered its naval forces to strike back at American ships if their vessels threaten the security of Iranian vessels. “Any action will result in a firm, swift and strong reaction from us,” General Salami said. | The Revolutionary Guards commander-in-chief, Gen. Hossein Salami, said on Thursday that Iran had ordered its naval forces to strike back at American ships if their vessels threaten the security of Iranian vessels. “Any action will result in a firm, swift and strong reaction from us,” General Salami said. |