Iran warns sanctions could hit oil price

Iran warned yesterday that oil prices could be substantially high if the United Nations slapped sanctions on the country for its nuclear programme

"Any action like that will increase oil prices very high. And I believe that the UN or its bodies will not put any sanctions on oil or the oil industry," Iranian Deputy Minister of Petroleum for International Affairs H. Nejad Hoseinian told a news conference in Islamabad at the conclusion of three-day talks with Pakistani officials.

"I do not think anybody could put any sanction on the oil industry and the gas industry," Hosenian said when asked what would be the future of the multi-billion-dollar Iran-Pakistan-India gas pipeline project.

Ahmad Waqar, secretary of the Pakistan Petroleum Ministry, who led the delegation in talks with Iran, also played down the threat of sanctions and said that Pakistan was dealing with the project in view of its energy requirements.

"Pakistan is viewing the project keeping in view its national interests. There are our energy requirements. We need energy for sustaining economic growth and the decisions taken by our leadership is based on that," Waqar told the news conference with the Iranian deputy oil minister.

"We hope substantial progress will be achieved ahead of the ministerial meeting in June," he said.

According to a statement issued at the press conference, both sides at the seventh meeting of the Iran-Pakistan Joint Working Group (JWG) on Iran-Pakistan-India (IPI) agreed to make immediate efforts for concluding the bilateral arrangements.

The JWG examined in detail various financial, commercial, technical and legal aspects of the project. Major issues discussed at the working group meeting included gas pricing formula, project structure, project feasibility, gas off-take volumes and gas sales and purchase agreements.

Teheran reiterated its determination to continue its nuclear programme after the White House on Saturday rejected Iran's offer to allow snap inspections of its nuclear facilities if the UN nuclear monitor resumes its lead role managing Iran nuclear issue.

Foreign Ministry spokesman Hamid Reza Asefi said Iran wanted to solve its dispute with the international community through diplomacy, but said Teheran would not give in to pressure.

"We insist that we are willing to resolve (our nuclear) dossier through dialogue, but Iran won't hold talks and won't surrender under threats and pressures," Asefi told reporters yesterday.

"Our reactions are totally compatible with the actions of the other parties. Against radical actions, Iran will react accordingly.

"If the UN Security Council makes decisions, the Islamic Republic of Iran will define and arrange its co-operation with the agency (the International Atomic Energy Agency) compatible with that," he said.

On Saturday, the US held firm to its position against Iran's nuclear activities after Teheran's offer to allow snap inspections to resume.

Iran's "statement does not change our position that the Iranian Government must give up its nuclear ambitions, nor does it affect our decision to move forward to the United Nations Security Council," White House spokesman Blaine Rethmeier said on Saturday.

Asefi did not comment on the US rejection of its proposal.

Source: China Daily