IFP Exclusive

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.

IFP Editorial Staff

The IFP Editorial Staff is composed of dozens of skilled journalists, news-writers, and analysts whose works are edited and published by experienced editors specialized in Iran News. The editor of each IFP Service is responsible for the report published by the Iran Front Page (IFP) news website, and can be contacted through the ways mentioned in the "IFP Editorial Staff" section.

Recent Posts

“Iran Hamdel” campaign sends aid to Gaza amid war

Aid items donated by millions of Iranians within a national campaign, have reached the beseiged…

1 hour ago

Iranian deputy FM: Cooperation with Saudis serves as a successful model for fostering peace and security

Iran's Deputy Foreign Minister Majid Takht Ravanchi has said Iran and Saudi Arabia are committed…

1 hour ago

Official: Iran responds to IAEA resolution with increased nuclear enrichment capacity

Behrouz Kamalvandi, the spokesperson for the Atomic Energy Organization of Iran (AEOI), says the organization…

3 hours ago

Pictures: Demonstrators in Tehran support people of Gaza, Lebanon

Hundreds of people gathered in Tehran on Friday morning in front of the United Nations…

3 hours ago

Int’l lawyer: US plans to sanction countries cooperating with ICC on Netanyahu arrest

An international law expert and analyst has revealed the U.S. plans to impose punitive measures…

6 hours ago

Minister of science: 25% of Iranian university professors emigrated due to economic challenges

Iran’s Minister of Science, Research, and Technology, Hossein Simayee Saraf, addressed on Thursday academic migration…

6 hours ago