Global Insights

Iran to sell oil in every currency - 3/17/2007

Iran's Oil Minister Sayed Kazem Vaziri Hamaneh

After threatening to sell oil in Euros instead of U.S. Dollars, Iran, ranked the fourth among the world oil producing countries, decided to sell oil in all currencies, in a historic move expected to clam Western pressure led by the United States, which fears a Euro-based Iranian oil sales, to rid Iran of its right under the Nuclear Non-Proliferation Treaty, to pursue peaceful nuclear technology.

"Our oil sales will be in every currency," Dow Jones quoted Iran's Oil Minister Kazem Vaziri Hamaneh as saying on the sidelines of an OPEC meeting in Vienna last Thursday.

"We need oil currencies," Vaziri added.

The announcement came following media reports regarding meetings between Iranian officials and Japanese refiner during which the two sides allegedly discussed having oil payments in euro or yens and not in U.S. Dollars.

Economic experts suggest the new move to be nothing but a new tactic adopted by the Islamic Republic to allay Western pressure to impose economic sanctions against it, after two years of continuous war of words between Washington and the Iranian government escalated in recent months raising fears of a possible military confrontation between the two countries.

Oil has been the main industry in Iran since the 1920s.

But in recent years it announced challenging the dollar hegemony by launching a euro-based oil bourse.

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