Page last updated at 12:48 GMT, Monday, 24 November 2008

Iran 'unhurt' by oil price fall

Oil refinery near Tehran - 2007
Iran relies on oil for 89% its government revenues

Iran's President Ahmadinejad has said his country will not be damaged by falling oil prices.

This is despite the fact that the country relies on oil for the vast majority of its export earnings and government revenue.

He insisted the fall in oil prices would not cause major problems, even if it dropped to five dollars a barrel.

The BBC's Tehran correspondent says many economists will be very sceptical about the president's analysis.

Just as the world banking crisis has had no impact on Iran's economy, neither will the oil price have that much impact
Mahmoud Ahmadinejad
Jon Leyne says that for every one dollar drop in the price of oil, Iran has lost around a billion dollars a year in revenue.

In recent days the price of oil slumped below $50 a barrel - barely one-third of the price earlier in the year.

Mr Ahmadinejad's government has been spending freely on social programmes at home, as well as helping its allies abroad.

So no-one knows how much, if any, of the windfall from higher oil prices ever made it into the reserves that are supposed to protect Iran against these leaner times, our correspondent says.

Print Sponsor

Iran economy facing 'perfect storm'
24 Oct 08 |  Middle East
Economic headache for Ahmadinejad
17 Oct 08 |  Middle East
Rare strike alarms Iran's leaders
13 Oct 08 |  Middle East
Iran leader faces poll challenge
12 Oct 08 |  Middle East
Iran celebrates global meltdown
10 Oct 08 |  Middle East
Country profile: Iran
21 Nov 08 |  Country profiles
Timeline: Iran
14 Nov 08 |  Country profiles

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2018 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific