Iran Economy Alert: Sanctions will have knock-on effect on west's economies

Oil has plunged 12 percent this month to about $92.50 after Iran and the six world powers resumed talks in Istanbul last month

Oil prices might go as high as $160 per barrel if the European Union goes ahead with a July 1 embargo, Hosseini told CNN's "Fareed Zakaria GPS" in an interview scheduled to air Sunday.

"We must pay close attention when we speak of oil revenues and sanctions against oil sales, who are the winners and the losers of such sanctions?" Hosseini said on the eve of a G-8 summit at the US presidential retreat at Camp David, Maryland.

"Indeed, it is difficult. But not just for Iran. And we can all rest assured that there will be a considerable increase in international oil market prices. Now, is this the best approach?"

Hosseini said his country has endured sanctions for 33 years and "this really shows that the economy, the economic strength of Iran is in such a way that it can withstand these sanctions and will not be the only economy to suffer."

Concern over a possible military conflict in the Persian Gulf, the region that holds the world's largest oil reserves, helped push crude prices as high as almost $110 a barrel in February. Oil has plunged 12 percent this month to about $92.50 after Iran and the six world powers resumed talks in Istanbul last month and said they would meet to continue their satisfactory negotiations this month.