'Iran will never sell oil cheaply'

Iranian Oil Minister Rostam Ghasemi warned the U.S. and the European Union that they will hurt themselves in their embargo of Iran's oil.

Following the conclusion of OPEC's June 14 meeting in Vienna, Ghasemi also warned Saudi Arabia not to use oil as a tool against Iran, the Iranian Students' News Agency (ISNA) reports.

Iran is in a standoff with the West over its nuclear programme. Iran contends its programme is civilian and peaceful while the U.S. and its allies insist it is military in nature. The U.S. has led sanctions against Iran's oil industry and its central bank.

The European Union will impose a full embargo on Iranian oil imports from July 1.

It was reported that Saudi Arabia has assured the U.S. and the EU that it can boost production and replace the oil which Iran sells to the world.

Using sanctions or military intervention against oil producing countries will only drive up global oil prices and destabilize the oil market, Iran's Oil Minister said.

When asked if Iran will be forced to sell its oil at a deep discount because of the sanctions against it, Ghasemi replied "never".


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