Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Iran minister's Saudi visit delayed due to oil price fall - Tehran

Published 18/01/2015, 16:17
© Reuters. Iranian Foreign Minister Mohammad Javad Zarif talks with reporters before meeting with U.S. Secretary of State John Kerry in Geneva

DUBAI (Reuters) - Iran's Foreign Minister Mohammad Javad Zarif has postponed a visit to Saudi Arabia in protest against Riyadh's reluctance to cut oil production, a senior Iranian official said on Sunday.

Oil prices have fallen 60 percent from their June 2014 peaks, driven down by rising production, particularly of U.S. shale oil, and weaker-than-expected demand in Europe and Asia.

But OPEC -- which includes Saudi Arabia, the largest producer and exporter within the oil producer club -- decided late last year to maintain its output despite slowing economies in order to defend its market share.

Last week, Iranian President Hassan Rouhani said that countries behind the fall in global oil prices would regret their decision and warned that Saudi Arabia and Kuwait would suffer alongside Iran from the price drop.

"There is something that caused a delay in our foreign minister's planned visit to Saudi Arabia and that is the fall in the oil price," Iran's top diplomat for the Middle East, Hossein Amir-Abdollahian, told state-run al-Alam television.

The two sides have been talking about the visit for about 18 months, and a date had been tentatively set for last October.

Amir-Abdollahian added that the oil issue had adversely affected efforts to improve strained relations with Riyadh.

"Oil-producing countries in the region expect Saudi Arabia and others to make an effort to prevent harm to our economies from the long-term effects of the fall in oil prices," he said.

"We have conveyed this to Saudi officials via diplomatic channels and made it clear to them that they must correct their policy."

© Reuters. Iranian Foreign Minister Mohammad Javad Zarif talks with reporters before meeting with U.S. Secretary of State John Kerry in Geneva

Regional powers Iran and Saudi Arabia find each other on opposite sides of many conflicts raging across the Middle East, including the civil wars in Syria and Iraq as well as the sectarian conflict in Iraq.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.