Saudi’s Inaction a Serious Mistake – Warns Iran Deputy Foreign Minister Abdollahian

FXStreet (Mumbai) - A top Iranian official has called for Saudi Arabia to take steps to address plunging oil prices, which fell this week to their lowest point in nearly six years. The two nations in recent months have headlined OPEC infighting over which tactics to pursue as profits from oil exports drop.

Hossein Amir Abdollahian described Saudi Arabia's inaction in the face of a six-month slide in oil prices as a strategic mistake and said he still hoped the kingdom, Tehran's main rival in the Gulf, would respond.
Saudi Arabia leads a faction of OPEC members that have chosen to maintain oil production at current levels despite the falling prices.

It’s the latest source of tension between the two Middle Eastern nations, which have clashed in recent years over opposing stances on ongoing military conflicts in Iraq and Syria as well as Saudi Arabia’s intervention in Bahrain, whose Shiite majority is locked in a tense power struggle with the Sunni ruling class.

Abdollahian said Iran would have more discussions with Saudi Arabia about the oil price, both through oil officials at OPEC and through the foreign ministry. He did not give specific details on when any meeting might take place.

Key Quotes:

"There are several reasons for the drop of the price of oil but Saudi Arabia can take a step to have a productive role in this situation," Abdollahian said.

"If Saudi does not help prevent the decrease in oil price ... this is a serious mistake that will have a negative result on all countries in the region," Abdollahian said in an exclusive interview on Wednesday evening.