Should the United State relax sanctions it enforced on Iran, the Islamic nation will be in a position to quickly increase crude oil production to six million barrels a day, as it has previously taken necessary measures to ensure this, as reported by state news agency Shana, quoting Iranian oil minister Bijan Namdar Zanganeh.
As of now, Iran produces around 2.5 million barrels a day.
Returning to the market and regaining market share isn’t a difficult task, though there will be a lot of pressure on the oil ministry and the next oil minister
Zanganeh said.
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The Iranian oil minister added that nothing represents a risk to world markets if Iranian exports prosper once U.S. sanctions are lifted, because “OPEC has a successful track record of… taking wise steps to strengthen market stability.”
Zanganeh’s comments came after the OPEC+ countries failed to reach an agreement extending the deal on oil cuts and the amount of production limits. Despite the fact that Iran is exempt from OPEC+ production quotas, there is potential for an influx of Iranian supplies to markets once sanctions are lifted, so it could weigh on prices.
On June 10, US Secretary of State Antony Blinken said Washington had lifted the sanctions imposed on three former Iranian government officials and two local energy companies. This happened when JCPOA members engaged in talks in Vienna to re-launch the Iranian nuclear deal, which the United States abandoned in 2018.
The JCPOA was signed in 2015 by Iran, China, France, Germany, Russia, the United Kingdom, United States, and the European Union, stipulating the lifting of international sanctions against Tehran in exchange for a reduction of its nuclear programme.
However, in 2018, the Trump administration unilaterally withdrew from the agreement and imposed new sanctions against Iran. Tehran responded by progressively relinquishing its own full withdrawal commitments until sanctions were lifted.
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