Thursday, 14 November, 2019

The Latest Speech of President Rouhani; an Analysis

Iranian President Hassan Rouhani said on Tuesday that countries behind the fall in global oil prices would regret their decision and warned that Saudi Arabia and Kuwait would suffer more than Iran from the price drop, it is because their budget is heavily dependent on exporting oil to other countries.

“Data showed that 80 percent of Saudi Arabia’s budget is based on oil sales and in 2013, oil accounted for roughly 90 percent of Saudi Arabia’s overall budget income while in Kuwait the figure stands at 95 percent. On the other hand, only one-third of Iran’s budget is based on oil sales, with an estimated 60 percent of the country’s exports tied to oil.” He said in a speech in the city of Bushehr.

But it seems that he has given implicitly another indication because all Iranian officials know well that Saudi Arabia and other wealthy Gulf Arab countries have accumulated hundreds of billions of dollars due to high oil prices over the years; therefore, Saudi authorities appear confident they can ride out the market slide.

In other words, he mentioned implicitly to the nuclear negotiations as well as the influence of fall in oil price on the acceleration of reaching to a comprehensive deal. In this respect, the era of playing with fall of oil price in order to exert pressure on Iran, has been finished. Yet, the Western countries have imposed sanctions on Iran for a long time but Iran has still maintained the situation very well.

Undoubtedly, the speech of Iranian President Hassan Rouhani was based on Iran’s logical strategies and polices. The policies which make Gulf Arab countries especially Saudi Arabia regret falling the oil price.

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