Iran trims oil discounts as export prices climb, oil minister tells parliament

Discounts on oil sales have been significantly reduced, while the average selling price has risen markedly, according to Iran’s oil minister, in remarks delivered to lawmakers during a high-level parliamentary meeting on energy policy.

Mohsen Paknejad gave a briefing at a session of the coordination council of parliament, which brought together deputy speakers and chairs of specialised committees alongside ministry officials.

Paknejad said there was no cause for concern over fuel supply, adding that the necessary measures had already been implemented to ensure stability in the domestic market and that the public could remain confident there would be no shortages.

Lawmakers at the meeting emphasised the need to sustain production levels and highlighted the importance of effective fuel consumption management by both the government and the public, as part of ongoing efforts to balance energy demand and supply.

Since the war began on February 28, 2026, global crude prices have climbed sharply, driven by fears of supply disruption in the Middle East. Brent crude jumped from around $70 per barrel at the outbreak of conflict to over $112–$116 by late March, a rise of more than 50 % as traders priced in risk and bottlenecks in key routes like the Strait of Hormuz.

Before and at the start of the conflict, Iranian oil traditionally traded at a discount to global benchmarks because of sanctions and market access issues. As global prices surged, the effective discount on Iranian barrels narrowed: even deeply discounted crude became comparatively more valuable as buyers competed for supply amid wider disruptions.

By mid-March, Brent crude was up about 28 % from pre-war levels, and traders were positioning for prolonged supply constraints, which reduced the relative gap between Iranian and benchmark prices.

By Aghakazim Guliyev