TEHRAN: Supreme Leader Ayatollah Ali Khamenei has expressed serious concerns over Iran’s declining oil production levels and outdated extraction methods.
Khamenei described the country’s oil production techniques as antiquated during a meeting with cabinet members on Sunday.
“Our oil production methods are old methods; the tools are old,“ he stated, acknowledging that Iran lags behind many other oil-rich nations.
The Iranian oil industry continues to struggle under severe Western sanctions reinstated after the United States withdrew from the 2015 nuclear deal.
President Donald Trump’s return to office has brought renewed “maximum pressure” tactics aimed at crippling Iran’s economy through sanctions.
Khamenei emphasised the urgent need for greater dynamism in oil exports and market diversification beyond current reliance on China.
Approximately 92% of Iranian oil currently goes to China, often sold at substantial discounts according to local media reports.
International relations have further deteriorated following European powers triggering the nuclear deal’s snapback mechanism last month.
Britain, France and Germany moved to reimpose United Nations sanctions amid ongoing tensions over Iran’s nuclear programme.
Tehran suspended cooperation with the UN nuclear watchdog after military conflicts with Israel resulted in strikes on Iranian nuclear facilities.
The recent hostilities have disrupted diplomatic efforts between Iran and the United States to negotiate a new nuclear agreement.
Foreign Minister Abbas Araghchi maintained in a published op-ed that Iran remains open to diplomatic solutions despite current challenges.
“There is still time — and a dire need — for an honest conversation,“ he wrote in The Guardian on Sunday. – AFP