DUBAI: Iran’s President Masoud Pezeshkian urged Opec members to unite against possible US sanctions on the major oil producer, after US President Donald Trump said he would seek to drive Tehran’s oil exports to zero.

Iranian crude oil exports currently stand at around 1.5 million barrels per day, with the majority going to China. The loss of such a volume, equal to about 1.4pc of total world supply, would be significant for markets.

Pezeshkian made the comments at a meeting with Opec Secretary General Haitham Al Ghais. Opec’s X account on Wednesday showed Al Ghais on a visit to Iran, which assumes the rotating Opec presidency this year.

“I believe that if Opec members are united and work together, the US would not be able to sanction and pressure one of them,” Pezeshkian said at the meeting with Al Ghais, according to Iran’s state media.

Trump on Tuesday restored his “maximum pressure” campaign on Iran, aimed at stopping Tehran from obtaining a nuclear weapon. Iran’s oil exports rose to the highest since 2018 during the term of President Joe Biden, despite US sanctions. Iran remains exempt from output curbs agreed to by Opec+ oil-producing nations.

Iranian oil minister Mohsen Paknejad told Al Ghais that imposing unilateral sanctions on crude producers would destabilise energy markets, the oil ministry’s SHANA news outlet reported earlier on Wednesday.

“Depoliticising the oil market is a vital issue for energy security. Imposing unilateral sanctions against major oil producers and putting pressure on Opec will destabilise oil and energy markets as well as harm consumers around the world,” Paknejad said.

Similar policies during Trump’s first term led to a sharp drop in Iranian oil exports to as little as 200,000 bpd in some months of 2020. In 2018, Opec and allies agreed to boost supply after Trump urged producers to offset losses caused by the sanctions on Iran.

Published in Dawn, February 6th, 2025

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kabul visit
26 Mar, 2025

Kabul visit

CONSIDERING the generally poor state of Pak-Afghan relations, the recently concluded three-day visit of Pakistan’s...
Drought warning
26 Mar, 2025

Drought warning

DRIVEN by rising temperatures linked to climate change, increasing drought events across Pakistan have affected tens...
Deadly roads
26 Mar, 2025

Deadly roads

DESPITE daytime restrictions on heavy vehicles, Karachi continues to witness one horrific traffic accident after...
Shortcut tactics
Updated 25 Mar, 2025

Shortcut tactics

IMF’s decision to veto move to reduce retail power tariffs seems to be against interests of middle-class consumers.
Unforced error
Updated 25 Mar, 2025

Unforced error

State must not push ordinary citizens away with its excesses when dealing with Balochistan.
Losing again
25 Mar, 2025

Losing again

WHEN Pakistan’s high-risk Twenty20 approach did not work, there was no fallback plan and they collapsed in a heap...