Middle East

Falling oil price threatens Iranian infrastructure plans

Dubai: Falling oil prices could put a stop on infrastructural development in Iran, an analyst said today.

Dr Mehrdad Emadi, senior economic advisor to the EU, said in an interview that infrastructure projects such as road, port, airport and building construction in Iran could be halted if the country’s oil price falls below $83/bbl.

Iran’s oil price hit $86/bbl on October 17, according to Mehr News Agency.

Emadi said Iran may boost exports of non-oil goods, which have not been banned by the international sanctions, as an alternative source of revenue.

Another option, according to Emadi, is to sign barter trade deals with other countries, similar to the one recently signed with Russia. [17/10/14]

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