Iranian minister sends warning to oil market
The West is unlikely to slap economic sanctions on Iran because such a move will dent Western interests more than those of Teharn, Iranian Minister of Economy and Financial Affairs Davood Danesh Jafari said on Sunday.
"The question of sanctions is more part of a publicity stunt," he said, adding "Iran is in a startegic region and any disruption to its political and economic conditions will spark a regional crisis and push up oil prices dramatically." "Iran has huge economic potential and can build on its wartime expereice to deal with any eventuality, the economy chief said, according to IRIB.
"Iran has achieved self-sufficiency on the domestic front and the weapon of sanctions is unlikely to have too much of an impact on its day-to-day administration of affairs," Danesh Jafari stated.
It should be noted that Iran is the world's fourth biggest crude producer and today it accounts for about 10 percent of total OPEC net oil export revenues. Iran's economy relies heavily on oil export revenues - some 80-90 percent of total export earnings and 40-50 percent of the government budget. Strong oil prices in the past few years have boosted Iran’s oil export revenues and helped its economic situation.
Meanwhile, Iranian President Mahmoud Ahmadi Nejad unveiled his first annual budget on Sunday, with government spending set for a huge increase thanks to high oil prices. The president asked parliament to approve 1.956 trillion rials ($217.4 billion) for the next Iranian year starting in March, a 26.7 per cent hike on current spending.