Iran Says It Can Still Sell Oil Despite New Sanctions

Post by : Monika

Photo: Reuters

On August 29, 2025, Iran’s Oil Minister, Mohsen Paknejad, made a strong statement that has caught the attention of the world. He announced that Iran will continue to sell its oil even though the United Nations (UN) is re-imposing sanctions through a process called "snapback." His words show Iran’s determination to protect its oil industry, which is the backbone of its economy.

The Snapback Sanctions

To understand this issue, it is important to know what the snapback mechanism is. In 2015, Iran signed a major deal with world powers, known as the Joint Comprehensive Plan of Action (JCPOA). This deal was designed to limit Iran’s nuclear activities in return for lifting UN sanctions. As part of the agreement, there was a built-in rule called "snapback."

The snapback rule means that if Iran is believed to have violated the terms of the nuclear deal, sanctions can automatically return. These sanctions are harsh—they target Iran’s ability to sell oil, trade freely, and access international financial systems.

Once sanctions are in place, countries and companies around the world are warned not to buy oil from Iran, or they risk punishment themselves.

Now, Britain, France, and Germany—often referred to as the "E3"—have triggered this snapback mechanism. This move means that unless a new agreement is reached within 30 days, all the old UN sanctions will come back into force.

Iran’s Response

Instead of showing fear or weakness, Iran’s Oil Minister Mohsen Paknejad stood firm. He explained that Iran has faced sanctions for decades and has built up ways to survive them. He stated that even though sanctions may cause challenges, they will not stop Iran from selling its oil.

Paknejad pointed out that Iran has "years of experience" in bypassing sanctions. This is true. Over time, Iran has created a complex system to sell its oil quietly, often using secretive shipping methods, disguised tankers, and alternative financial arrangements. Because of this experience, Iran believes it is ready to face whatever penalties come next.

Why Oil Matters So Much to Iran

Oil is at the heart of Iran’s economy. It provides a large share of the government’s income and supports public services, infrastructure, and social programs. Without oil sales, Iran’s economy could shrink rapidly, causing inflation, job losses, and hardship for ordinary people.

This is why Iran is unwilling to give up on oil exports. Even when sanctions limit access to international markets, Iran continues to search for creative ways to keep the oil flowing out and the money flowing in.

A History of Sanctions

Iran’s claim that it can withstand sanctions is not empty. The country has a long history of living under restrictions. In the past, when the United States and its allies banned Iranian oil, Iran found ways around it. Tankers carrying Iranian oil would sometimes switch off their tracking devices to hide their locations. At other times, Iran would change the flags and names of ships to make them look like they belonged to other countries.

Another trick Iran has used is ship-to-ship transfers, where oil is moved from one vessel to another at sea, making it hard to trace its origin. Iran has also relied on barter deals, trading oil for goods or services instead of using money. These methods allowed Iran to keep exporting oil even when global powers tried to stop it.

Rising Global Tensions

The return of snapback sanctions is happening during a tense period in the Middle East. Just two months ago, the United States and Israel carried out airstrikes against Iranian targets. These strikes increased the hostility between Iran and its rivals. Now, with Europe activating the snapback mechanism, the pressure on Iran is even higher.

For Iran, these events are seen as part of a bigger plan to weaken the country. For Western nations, however, the goal is to prevent Iran from developing nuclear weapons. This deep disagreement has kept relations cold and full of mistrust.

What This Means for Businesses

Whenever sanctions are imposed, businesses around the world become cautious. Companies that buy oil or do business with Iran may face heavy fines or legal trouble if they continue. This uncertainty makes many businesses step back, even if they would like to trade with Iran.

Some countries may choose to keep buying Iranian oil in secret, but others may turn to different suppliers. This shifting of markets can affect global oil prices, depending on how much oil Iran manages to export.

The Global Oil Market Impact

Iran is one of the world’s major oil producers. If its oil exports are reduced because of sanctions, global supply could tighten. This could push up prices, affecting everything from fuel costs at gas stations to shipping costs for goods. On the other hand, if Iran finds ways to keep selling oil despite sanctions, the black-market trade could increase, making oil markets more unpredictable.

Energy experts believe that Iran’s ability to bypass sanctions makes it hard for the global community to fully block its oil. Even with strict measures, some of Iran’s oil still reaches the market through hidden channels.

The Bigger Picture

The situation is not just about oil or money. It is also about politics and power. Iran sees the snapback sanctions as unfair and politically motivated. Western countries, on the other hand, argue that sanctions are necessary to ensure Iran does not develop nuclear weapons.

This clash of views has no easy solution. Unless both sides return to serious negotiations, the cycle of sanctions and resistance is likely to continue.

Iran’s Confidence

Paknejad’s words show that Iran wants to project confidence to both its people and the world. By declaring that sanctions will not stop them, Iran hopes to reassure its citizens and discourage its rivals. At the same time, this message signals to oil buyers that Iran is still open for business.

For now, the world waits to see whether Iran can deliver on its promises. The snapback mechanism gives a 30-day window, and during this period, both diplomacy and economic maneuvers will take place behind the scenes.

Iran oil sales