The growing US pressure on the world to totally stop buying Iranian oil has produced a warning from top Iranian officials that the world economy, and America’s economy in particular, would pay a severe price from such a ban.
Iran’s OPEC governor Hossein Kazempour Ardebili said the US ban amounted to “self harm,” adding that Iran’s position is that oil should not be used as a weapon or for political purposes. He predicted that higher oil prices would end up hurting the US economy.
Historically that has been the case, and with Saudi production already at record levels, Trump’s expectation that the Saudis will make up for Iran’s shortfalls are not realistic. Still, US officials continue to demand the world, including major Asian powers, stop buying from Iran.
Iranian President Hassan Rouhani downplayed the seriousness of the ban, saying he is confident Iran will survive this round of US sanctions as it has other sanctions in the past. Many coutries have not committed to the US ban, and if prices rise, Iran may ultimately take in just as much money even with fewer exports.