Iran's Khamenei urges oil-free economy as crude sales shrink
Iran's supreme leader has underlined the need for an economy independent of oil as the country's crude exports continue to plunge amid US pressure on Tehran's customers.
Supreme Leader Ayatollah Ali Khamenei said the "easy" income from crude oil exports is a "longstanding problem" in the Iranian economy that has hindered the country's progress. During a meeting with President Hassan Rouhani and members of his cabinet, Khamenei called for an economy independent of crude exports and encouraged a closer focus on domestic productivity.
Iran's lifeline oil sector has been significantly strained due to the US "maximum pressure" policy that has a stated goal of driving Tehran's oil exports to zero. In so doing, the government of President Donald Trump has refused to extend sanctions waivers granted to Iran's major oil buyers including China, India and Turkey.
While Iranian oil shipments to those destinations have not fully stopped, the figures are gloomy. July sales marked a dramatic 78% plunge compared to last year at 100,000 barrels per day, a level unseen since the Iraq-Iran War. Yet the Iranian authorities have persistently claimed they will bypass sanctions by maintaining the flow through unconventional channels.
In his Aug. 21 speech, Khamenei cited the example of "certain countries which have witnessed eye-catching growth without a single drop of oil." A major concern with an oil-based economy, according to Khamenei, is the pricing system manipulated by the world's biggest consumers, who "can pressure the producing countries based on self-interest as well as political considerations."
