Iran Tuesday refused to rule out using oil supplies as a weapon in the standoff over its nuclear programme, saying Washington had never excluded attacking the Islamic republic. "When the Americans say that using the military option against Iran regarding its nuclear issue is not off the table then Iran can say that it will not put aside the instrument of oil," Iran's representative to OPEC, Hossein Kazempour Ardebili, said in an interview with the Shargh newspaper.
Asked where Iran's "red line" on using oil as a weapon lay, he replied: "The red line lies where the Americans fail to say that using military means against Iran is illegal."
"We will not be the first to use our instrument but if the others do not put aside their pressure instruments in the negotiations, then it is natural both sides talk about their instruments," he added.
"Talking about instruments does not mean that they will be used, it is a deterrent," said Kazempour Ardebili.
Iran's refusal to rule out using oil as a weapon has frequently rattled oil markets, which fear that any squeeze in supplies from OPEC's number two producer could cause a huge jump in prices.
There have also been fears that Iran could block the Strait of Hormuz, a vital channel for the transport of oil.
The United States has never ruled out the use of force against Tehran over its nuclear programme although Washington insists it wants the issue resolved through diplomacy.
Washington accuses Tehran of seeking nuclear weapons. Iran vehemently denies the charges, saying it only wants to generate energy for a growing population whose fossil fuels will eventually run out.
Ardebili predicted that the price of oil would rise to "at least" 100 dollars per barrel if Iran moved to cut its supply of 2.5 million barrels per day from the market.
But he also played down fears of a looming confrontation between Iran and the United States and emphasised that Iran had not drawn up plans for using oil as a weapon.
"Our inclination to use our instrument is as much as the other side wanting to use their instrument. So if they put their instrument aside we can do so too."
Ardebili said Iran would be prepared to export oil to the United States if Washington lifted an embargo imposed after the Islamic revolution. He even expressed hope the two enemies could one day cooperate in the oil sector.
"Iran is ready to have energy and oil export relations with the US if the American pressure regarding preventing our oil exports to them and preventing their companies in investing in Iranian oil industry is lifted."
He said Iran would be able to raise its production to between 6-7 million barrels of oil a day by 2015 from the current 4.1 million if US firms were able to invest in its oil industry.
However, Ardebili candidly admitted that Iran had been hurt by the US sanctions.
"We do not have the US companies' contribution in our oil sector. We have to deal with second-rate firms. We have to accept working with them and we have to tolerate their higher prices."
Analysts say Iran's oil industry is suffering from a lack of investment, a problem now compounded by US pressure on European and Asian firms to cut their business with the Islamic republic.
"It is not only that US companies are not investing in the Iranian oil industry, but other companies are not investing due to the pressure of the United States," complained Ardebili.
Oil prices dipped slightly on profit-taking on Tuesday, but were still close to highs for more than nine months over a broad range of worries about the prospect for global supplies.
In London, Brent North Sea crude for August delivery fell 13 cents to 72.05 dollars a barrel.
New York's main oil futures contract, light sweet crude for delivery in July, slipped five cents to 69.04 dollars per barrel.
Source: Agence France-Presse
