OREANDA-NEWS. Tightening US sanctions against Iran has a greater impact on the oil market, said Russian Economic Development Minister Maxim Oreshkin. "Iran is a major producer of crude oil in the world. As we can see, any sanction stories, as they become tougher, affect the balance we see on the world oil market. If there hadn't been a sharp decline in production in Iran, if not there was a sharp decline in production in Venezuela over the past year, in the form in which the OPEC transaction now exists, wouldn't have allowed the market to stabilize by 100%”, said the Minister during a speech at the Valdai Discussion Club.

According to the minister, the more restrictions for Iran, the more they "push" oil prices up. Nevertheless, Oreshkin stressed that fluctuations in oil prices for Russia now mean much less than they did five or seven years ago. 

In May 2019, oil production in Iran was at its lowest level since the 1980s, the International Energy Agency reported. Since May, temporary permits for the purchase of Iranian oil, issued by the United States to several countries, have ceased to operate. As a result, oil exports from Iran collapsed 1.6 times - up to 810 thousand barrels per day. For comparison, a year ago, Iran exported 2.6 million barrels per day. The United States set as its goal to reduce Iranian exports to zero.

US President Donald Trump signed on June 24 a decree providing for tougher sanctions against Iran. Speaking to reporters, he clarified that the new unilateral measures are directed primarily against the leader and spiritual leader of the Islamic Republic, Ayatollah Ali Khamenei. In turn, US Treasury Secretary Stephen Mnuchin later said that Iranian Foreign Minister Mohammad Javad Zarif is scheduled to be added to the sanctions list later this week. Eight warlords of the Islamic Revolutionary Guard Corps (elite units of the Iranian Armed Forces), including the general responsible for the destruction of the American reconnaissance unmanned aerial vehicle on June 20, also fell under sanctions.