Iran threatens to discontinue oil exports
Source: Agencies |
October 24, 2012, Wednesday
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Print Edition
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IRAN said yesterday it would stop oil exports if pressure from Western sanctions got any tighter and it had a "Plan B" contingency strategy to survive without oil revenues.
Western nations led by the United States have imposed tough sanctions on the Islamic Republic this year in an attempt to curb its nuclear program they say is designed to produce atomic weapons. Tehran says its nuclear plans are peaceful.
"If sanctions intensify we will stop exporting oil," Iranian oil minister Rostam Qasemi said in Dubai.
Qasemi's statement is the latest in a series of threats of retaliation by Tehran in response to the sanctions, which have heightened political tensions across the Middle East and, analysts say, led to a sharp drop in Iranian oil exports.
"We have prepared a plan to run the country without any oil revenues," Qasemi said, adding, "So far to date we haven't had any serious problems, but if the sanctions were to be renewed we would go for 'Plan B.'
"If you continue to add to the sanctions we (will) cut our oil exports to the world... We are hopeful that this doesn't happen, because citizens will suffer. We don't want to see European and US citizens suffer," he said, adding the loss of Iranian oil on the market would drive up oil prices.
The US government has focused on blocking Iran's oil exports because it estimates crude sales provide about half of Iranian government revenues and that oil and oil products make up about 80 percent of total exports.
The rial plunged about a third against the US dollar in the week to October 2, reflecting a slide in oil income wrought by tightened sanctions over the summer aimed at pressuring Tehran to drop its coveted nuclear program.
How long the economy could function without selling any oil is unclear, but Iran has large currency reserves accumulated over decades as one of the world's largest oil suppliers.
Because of the slide in the rial and oil export earnings, the government is already moving onto an austerity footing, cutting imports of non-essential goods and urging its citizens to buy fewer foreign products.
Earlier yesterday, Qasemi said Iran was still producing 4 million barrels per day, rejecting reports output had fallen to around 2.7 million bpd.
Western nations led by the United States have imposed tough sanctions on the Islamic Republic this year in an attempt to curb its nuclear program they say is designed to produce atomic weapons. Tehran says its nuclear plans are peaceful.
"If sanctions intensify we will stop exporting oil," Iranian oil minister Rostam Qasemi said in Dubai.
Qasemi's statement is the latest in a series of threats of retaliation by Tehran in response to the sanctions, which have heightened political tensions across the Middle East and, analysts say, led to a sharp drop in Iranian oil exports.
"We have prepared a plan to run the country without any oil revenues," Qasemi said, adding, "So far to date we haven't had any serious problems, but if the sanctions were to be renewed we would go for 'Plan B.'
"If you continue to add to the sanctions we (will) cut our oil exports to the world... We are hopeful that this doesn't happen, because citizens will suffer. We don't want to see European and US citizens suffer," he said, adding the loss of Iranian oil on the market would drive up oil prices.
The US government has focused on blocking Iran's oil exports because it estimates crude sales provide about half of Iranian government revenues and that oil and oil products make up about 80 percent of total exports.
The rial plunged about a third against the US dollar in the week to October 2, reflecting a slide in oil income wrought by tightened sanctions over the summer aimed at pressuring Tehran to drop its coveted nuclear program.
How long the economy could function without selling any oil is unclear, but Iran has large currency reserves accumulated over decades as one of the world's largest oil suppliers.
Because of the slide in the rial and oil export earnings, the government is already moving onto an austerity footing, cutting imports of non-essential goods and urging its citizens to buy fewer foreign products.
Earlier yesterday, Qasemi said Iran was still producing 4 million barrels per day, rejecting reports output had fallen to around 2.7 million bpd.
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