(Photo: The Arak Oil Refinery in Iran) Iran Scrambles To Stem Oil Price Plunge -- L.A. Times
Not only is its economy dependent on oil, but the commodity is the centerpiece of the nation's goal of reclaiming its status as a regional superpower.
TEHRAN -- Iran's envoy to OPEC has been a busy guy. As oil prices plunged in recent weeks, Mohammad Ali Khatibi has been working the phones and traveling in a frenetic attempt to get the oil-producing cartel to agree to reduce supply to keep the price from dropping further.
"I think the low price is a real damage to the future of production," he told media.
Iran has reason to worry. Not only is its budget heavily dependent on revenue from oil exports, but international sanctions have exacerbated the economy's weaknesses. And to top it off, the crisis comes as Iran is trying to reclaim its status as a regional superpower, which it lost 30 years ago after the Islamic Revolution and the start of the war with Iraq.
Oil is the centerpiece of that ambition.
Oil revenue funds Iran's nuclear technology program, a point of great friction with the West. It also finances a state-heavy economy that keeps the social peace by providing jobs, subsidies and entitlements.
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My Comment: I do not feel sorry for them.