Iran’s President Masoud Pezeshkian has called on OPEC members to unite in response to potential U.S. sanctions targeting the country’s oil exports. This plea follows U.S. President Donald Trump’s announcement of intentions to reduce Iran’s oil exports to zero, a move that could significantly impact global oil markets.
Key Highlights:
Current Iranian Exports:
Iran’s crude oil exports are approximately 1.5 million barrels per day, primarily directed towards China.
The loss of this volume would represent about 1.4% of the total global oil supply, posing a substantial risk to market stability.
OPEC Meeting:
Pezeshkian’s comments came during a meeting with OPEC Secretary General Haitham Al Ghais, who is currently in Iran as part of his visit.
He emphasized that unity among OPEC members is crucial to counteract U.S. sanctions, stating, “If OPEC members are united and work together, the U.S. would not be able to sanction and pressure one of them.”
U.S. Sanctions Context:
Trump has reinstated his “maximum pressure” campaign against Iran, aimed at curbing its nuclear ambitions.
Despite U.S. sanctions, Iran’s oil exports reached their highest levels since 2018 during President Joe Biden’s term, highlighting the complexities of the current geopolitical landscape.
Stability Concerns:
Iranian Oil Minister Mohsen Paknejad warned that unilateral sanctions on crude producers could destabilize global energy markets.
He stated, “Depoliticising the oil market is a vital issue for energy security,” emphasizing that such sanctions would harm consumers worldwide.
Historical Context:
During Trump’s first term, sanctions led to a drastic reduction in Iranian oil exports, at one point falling to as low as 200,000 bpd in 2020.
In 2018, OPEC and its allies agreed to increase supply following Trump’s call to offset losses from Iranian sanctions.
Strategic Preparedness:
Paknejad mentioned that Iran has developed strategies to handle potential U.S. sanctions.
He also highlighted that the primary challenge for the global oil market in the medium to long term is the need for upstream investment, linking current supply concerns to political pressures on OPEC+.
Leadership Role:
In December, Paknejad was elected as the president of the OPEC Conference for 2025, indicating Iran’s increasing influence within the organization.