The continued tensions in the Middle East pushed the prices of crude oil higher. The Brent crude future passed $118 mark. Iranian Heavy exported to the West is priced slightly lower than Brent and at current prices it would bring Iran more than $110/barrel. The oil exported to the East is pegged to the Oman/Dubai marker, which is also rising as fast.
At the current pace, the value of Iran’s oil exports in the new Iranian calendar year that began two weeks ago could near $90 billion. The country is in the midst of a massive and ambitious subsidy reform program and such dramatic rise in oil revenues would make it that much easier for the program to succeed, including the ability of the government to continue its monthly cash payments to Iranian families to cope with the rising prices resulting from the removal of government subsidies.