Iran is set to boost its military budget significantly with a surge in oil revenues, despite facing Western sanctions. The upcoming 2025 budget will triple the allocation of oil funds to the armed forces, amounting to around $13 billion. With tensions escalating in the region, the Islamic Republic of Iran Armed Forces will receive half of the total oil revenue.
Most of Iran’s oil exports go to China, providing a steady income for the country. Despite U.S. sanctions, Iran has managed to export record amounts of oil, funding its military and proxies like Hamas and Hezbollah. President Biden’s administration has faced criticism for not enforcing sanctions strictly, allowing Iran to benefit economically.
The budget forecasts an increase in daily oil exports and anticipates substantial revenue from energy sales. To maintain stability in the region, the Biden administration has waived some sanctions, leading to a flow of funds into Iran’s economy.
Iran’s military expenditure will receive a significant boost from oil revenues, shaping the country’s geopolitical future amidst ongoing tensions in the Middle East.