Iran’s representative to OPEC says the European Union will “undoubtedly” commit an ‘economic suicide’ if it introduces an oil embargo against Iran.
Iran’s representative to OPEC says the European Union will “undoubtedly” commit an ‘economic suicide’ if it introduces an oil embargo against Iran.
“With economic crisis in euro zone area any sanctions on Iran’s oil will put European countries in a deeper crisis,” Mohammad-Ali Khatibi told the Mehr News Agency.
Khatibi warned that the U.S. and some European countries must avoid adventurism in the global oil market.
Iran, OPEC's second biggest producer after Saudi Arabia, exports an average 2.2-2.3 million barrels per day, of which roughly 18-20 percent goes to the European market.
EU member states have agreed in principle to impose an embargo on Iranian oil exports to Europe but it is likely to have a much bigger impact on the EU member states that depend most on Iranian oil as a source of their imports, in particular Spain, Italy and Greece.
Some EU countries reportedly have been seeking a grace period of around six months for the embargo to give them time to source alternative supplies.
Iran has also warned Persian Gulf Arab states not to make up for any shortfall in its oil exports under new U.S. and EU sanctions.
If Arab neighbors compensate for a looming EU ban on Iranian imports, "we would not consider these actions to be friendly," Khatibi told the Sharq newspaper in an interview published Sunday.
"They will be held responsible for what happens" in that case, he said, adding, "One cannot predict the consequences."
"If the oil producing Persian Gulf states give the green light to replacing Iran's oil these countries would be the main culprits for whatever happens in the region -- including the Strait of Hormuz," Khatibi warned.
"Our Arab neighbor countries should not cooperate with these adventurers... These measures will not be perceived as friendly," he reiterated.
Saudi Arabian Oil Minister Ali al-Naimi told CNN on Monday that his country could increase production by two million barrels “almost immediately” if sanctions are imposed on Iran’s oil exports.
