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05:23 GMT +3 hours18 December 2014
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Iran Warns of Oil Price Hike

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The current embargo on Iranian oil and political pressure on the Islamic Republic will result in higher oil prices on international markets, Petroleum Minister Rostam Qasemi said.

The current embargo on Iranian oil and political pressure on the Islamic Republic will result in higher oil prices on international markets, Petroleum Minister Rostam Qasemi said.

“If [oil] producing countries are confronted with difficulties and restrictions, the market will react to the situation accordingly, which will cause an increase in prices,” he told RIA Novosti's Mikhail Gusev, his first interview with a foreign news agency.

Iranian oil exports have fallen by an estimated 40 percent since the EU introduced an oil embargo against Tehran in July.

According to Iran’s Petroleum Ministry, the Islamic Republic currently produces 4 million barrels of crude per day, half of which is exported.

The price for October futures on U.S. Light Sweet Crude Oil dropped 16 cents as of 8:40 a.m. in Moscow [GMT 04:40], or to $96.31 per barrel. The price for October futures on Brent dropped 19 cents to $114.38 per barrel.