Iran warns Gulf nations not to boost oil production

IRAN warned Gulf Arab oil producers against boosting production to offset any potential drop in Tehran’s crude exports in the event of an embargo affecting oil sales, the latest salvo in the dispute between the West and the Islamic Republic over its nuclear programme.

The comments by Iran’s OPEC governor, published yesterday, came as Saudi Arabia’s oil minister was quoted denying his country’s earlier pledges to boost output as needed to meet global demand was linked to a potential siphoning of Iranian crude from the market because of sanctions.

World oil markets have been jolted over concerns that Iran may choke off the vital Strait of Hormuz in retaliation for sanctions hampering its ability to sell its oil. Saudi Arabia and other key Gulf Arab producers have recently said they are ready to provide stable and secure supplies of oil.