by Patrick Appel

Karim Sadjadpour posts a Q & A on the current situation in Iran:

[T]he country that has the greatest potential to influence internal Iranian affairs in the short term is Saudi Arabia. The Iranian economy is heavily reliant on oil revenue, and each one dollar drop in oil prices is nearly one billion dollars of lost annual revenue for Iran. If Saudi Arabiawhose relations with Iran have deteriorated since Ahmadinejad became presidentwere to quietly increase output in order to provoke a price drop it could prove devastating to Iran, far more damaging than any sanctions that are now being deliberated.


I don't see Saudi Arabia purposefully lowering the price of oil. And there is already an oil glut.

(Hat tip: Andrew Sprung)

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