Iran Threatens US, Europe with Potential Oil Exports Suspension

Iran will suspend all oil exports-which would push crude oil prices higher worldwide if the U.S. and Europe tighten sanctions on its economy, Iran's Oil Minister Rostam Quasemi warned reporters Tuesday.

The sanctions, according to Quasemi, were the recently passed by the United States and the European Union aimed at ceasing Iran's nuclear program, which western nations believe is the next step towards a nuclear-armed Iran.

"If you continue to add to the sanctions, we will stop our oil exports to the world," he said at a news conference in Dubai, Business Week reported. "The lack of Iranian oil in the market would drastically add to the price."

Last week, the European Union added several more restrictions to oil and gas bans currently standing against Iran, including prohibiting transactions between European and Iranian banks and bans on natural gas imports.

As CNBC reports, the Tuesday statement by Qasemi was the latest in a string of new threats from the Iranian government in response to the sanctions, which have heightened political tensions in the Middle East, become a discussion topic in the recent U.S. presidential election and led to Iranian exports dropping.

"We have prepared a plan to run the country without any oil revenues," Qasemi said. "So far to date we haven't had any serious problems, but if the sanctions were to be renewed we would go for 'Plan B.'"

He added, "If you continue to add to the sanctions we (will) cut our oil exports to the world... We are hopeful that this doesn't happen, because citizens will suffer. We don't want to see European and U.S. citizens suffer."

However, some believe that the latest threat was more likely not credible.

"It's just making noise. It would be like cutting off their nose to spite their face," Chief Economist at the Centre for Global Energy Studies Leo Drollas told CNBC.

"Iran needs to export its crude more than other countries need to import it. They are desperate for cash," Drollas said.