Wednesday, December 10, 2014

Iran: Fall in Oil Prices is ‘Treachery’ - UPDATE

Iranian President Hassan Rouhani said today that the sharp fall in oil prices is the result of “treachery,” in an apparent reference to Saudi Arabia and GCC countries, which opposed production cuts to lift prices.

Rouhani made the comments at a Cabinet meeting in Tehran. He added the fall in prices is “politically motivated” and constitutes a “conspiracy against the interests of the region, the Muslim people and the Muslim world.” (IRNA/AP, 10 December)

“The people of the region will not forget such conspiracies, or in other words, treachery against the Muslim world,” Rouhani said.

Meantime, the Brent crude is trading at $64.24 today, a fall of more than 40 percent since June.

UPDATE: Iranian VP for Strategic Planning Mohammad Bagher Nobakht said on Wednesday that even if the oil drops to $40, Iran can mange its affairs.

Note: This blogger believes that countries do survive (even Somalia). The question is, How and at what level of development? Iran's economic development unfortunately has been directly tied to oil revenues. A price drop to $40 will have serious implications for the country, especially when it's fighting in two conflicts. The VP of strategic planning should know that; unless his comments were bravado more than substance.

File photo: Getty Images

No comments: