Putin ally Iran sees oil exports fall amid steeper competition from Russia for Asian buyers

Increased competition from Russia has caused Iran's oil exports to fall.

The peak of exports was 1 million barrels a day. The competition is heating up in China and Iran is trying to stay competitive with Russia.

Iran is forced to sell oil at a discount and disguising its cargo in order to survive the sanctions. Competition from Russia is making Tehran make even sharper markdowns.

Europe is moving away from the Kremlin's crude as a result of the invasion of Ukraine and Russia is relying more on Asia. Western sanctions have put additional pressure on Moscow's oil exports, and China is showing an increased willingness to fill the void.

Iran's daily production is over 2 million barrels. If a revived 2015 nuclear deal allows Tehran to increase crude activity, Iran hopes to increase output even more.

Iran is able to pump 4 million barrels a day and hopes to increase that to 5.7 million, according to the Oil Minister.