Saturday, January 28, 2023

Sanctions Kept Iran Fit for Oil Price Drop, VP Says

The dramatic plunge in oil prices would not have a huge impact on Iran’s economy, since the country was already prepared for such conditions under the pressure of American sanctions, First Vice President Es’haq Jahangiri says.

In a meeting with the Ministry of Roads and Urban Development officials on Tuesday, Jahangiri said Iran was suitably prepared to weather the impact of an unprecedented collapse in the oil prices, because the US sanctions had already forced the Islamic Republic to devise oil-free economic solutions.

The arrangements made beforehand have enabled Iran to get ready for the elimination of oil incomes from the national budget, he noted.

“The crises and the sanctions imposed by the United States of America have prepared us for running the country under the current circumstances,” the vice president stated.

Jahangiri then noted that many oil-producers, such as Saudi Arabia, will definitely encounter serious problems with crude traded at below $70 a barrel, saying even a recent decision from the OPEC+ to cut output by 10 million barrels could not prevent the collapse in oil prices.

The vice president also warned that the other businesses dependent on oil, such as the petrochemical and metal industries, will suffer the economic consequences of the novel coronavirus outbreak.

He finally called on the Iranian universities and academic centers to formulate scientific plans to deal with the situation and urged the administrative organizations to develop new plans for the current circumstances.

The Persian Gulf stock markets fell on Tuesday, and the Saudi riyal dropped in the forwards market after US crude oil futures collapsed below $0 on a coronavirus-induced supply glut.

Global benchmark Brent crude has fallen sharply in response to the collapse of demand following reduced economic activity.

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