Dubai: Iran warned its Gulf neighbours yesterday against boosting oil production to offset any potential drop in Tehran's crude exports in the event of an embargo affecting its oil sales, the latest salvo in the dispute between the West and the Islamic Republic over its nuclear programme.
Tehran's recent threat is a sign that the US-led efforts to get European and Asian markets to boycott Iranian oil are making progress, experts say. "These acts will not be considered friendly," Mohammad Ali Khateebi, Iran's Opec governor said yesterday adding that if Arab producers "apply prudence and announce that they will not participate in replacing oil, then adventurist countries will not show interest," in the embargo.
Both Japan and South Korea have announced they will take concrete action to cut their Iranian oil imports. China is studying other options, experts noted.
Saudi Arabia has expressed readiness to fill market needs as it did when there was a drop in oil exports during the Libyan revolution. Iran has warned that it could shut the vital Strait of Hormuz over sanctions affecting its oil exports, but most analysts say Iran realises the move would come with serious consequences.
