Donald Trump‘s brutal war on Iran has resulted in a financial bonanza for the country he has attempted to grind into submission.
Iran is now earning almost double the amount in daily oil sales than it did before the U.S. and Israel strikes were launched on Feb. 28.
The country is currently exporting 2.4 million to 2.8 million barrels of oil and petroleum products per day, which includes 1.5 million to 1.8 million daily export of crude, an inside source familiar with Iran’s oil accounting confirmed to The Economist.
Those figures match, and may exceed, what Iran exported last year. The products are now also selling at much higher prices.
Iran is now using the increased oil profits to boost its defense by funding its elite fighting force, the Islamic Revolutionary Guard Corps, the publication says. China is also assisting Iran, with funds moved to Asia to protect it from the Israeli military.
The Daily Beast has contacted the White House for comment.
Trump’s war, now in its fifth week, has effectively closed the Strait of Hormuz, meaning up to 20 percent of the world’s oil supply cannot reach its customers.
Iran’s oil tankers are still passing through the Strait of Hormuz while other Gulf states have had their access limited, leading to a drop in exports. Iranian officials have also revealed they are charging fees to ensure the safe passage of some tankers through the Strait. Lloyds List reported one vessel paid around $2 million.
This weekend, the national average for oil reached $3.96 per gallon, up from $2.97 when the war began on Feb. 28.
On Sunday, Brent crude, the global benchmark, jumped nearly 2.5 percent to $107.92 a barrel, while U.S. crude jumped nearly 3 percent to $102.57.
During a press gaggle on Air Force One on Sunday, Trump claimed Iran was sending the U.S. more “big boats of oil” as a “sign of respect.”
Trump said there would be 20 boat loads of oil, in addition to the 10 “massive” boats he teased were a gift to him last week.
The president called the 20 new boats “a tribute” and said they would start going through the Strait of Hormuz from Monday morning.
“I would only say that we’re doing extremely well in that negotiation,” Trump claimed regarding his war talks with Iran. “But you never know with Iran, because we negotiate with them, and then we always have to blow them up.”
Even after the war ends, the price of gas and oil will not drop immediately and will rely on the Strait of Hormuz safely reopening, as well as repairing nearby infrastructure, according to CNN.
Last week, Trump admitted he knew his war on Iran and subsequent chaos in the Middle East would create an oil crisis, but did not care.
“I thought it was going to be much worse,” the billionaire said. “I thought that the energy prices, oil prices, would go up higher. I thought the stock market would go somewhat lower. But it didn’t matter to me. It’s short-term.”
During the gaggle, Trump also confirmed a New York Times report that the U.S. was letting a Russian oil tanker go to Cuba, the country he claimed would be “next” to be taken over by America.
“We don’t mind having somebody get a boatload because they need they have to survive,” Trump said of Cuba, said he had “no problem” with the delivery.
When asked if it “helps” Russian President Vladimir Putin, Trump disagreed. “He loses one boatload of oil. That’s all it is. It’s fine. If he wants to do that and if other countries want to do it, doesn’t bother me much.”
The Pentagon is preparing for weeks of ground operations in Iran, involving Special Operations raids and infantry troops, according to The Washington Post.
Asked about the claims on Sunday on Air Force One, Trump did not give a direct answer. “We have tremendous numbers of ships over there, we don’t need them all because of, you know, the power. I would say... we’re weeks ahead of schedule with Iran.”
It comes as a top Iranian official warned the U.S. about launching a ground invasion.
On Sunday, Mohammad Bagher Ghalibaf, Iran’s parliament speaker, threatened to set U.S. troops “on fire,” according to Iranian official media.
