Russian min: Tougher sanctions vs Iran push oil prices up

MOSCOW, Jun 25 (PRIME) -- Tightening of sanctions against Iran, one of the biggest oil producers, has an impact on the balance on the commodities market, and this can lead to growth of oil prices, Russian Economic Development Minister Maxim Oreshkin said on Tuesday.

“Iran is of course a major producer of crude oil in the world, so we see that any sanction stories as they tighten – they affect the balance that we see on the global oil market,” he said.

“From the point of view of energy markets, great restrictions for Iran are a story that in the short term, in the medium term, pushes oil prices up, not down. This effect exists,” he said.

For Russia, an increase of oil prices has currently a smaller effect than five to seven years ago, he added.

On Monday, the U.S. introduced new sanctions against Iran, including targeting Supreme Leader Ali Khamenei, and also said it was preparing to impose sanctions on Iranian Foreign Minister Javad Zarif soon.

Oreshkin also said that the outcome of trade negotiations between China and the U.S. is completely unpredictable and will set the vector for the global economy for the coming year.

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