With depleting oil prices, Iran is not in the brightest position to negotiate further its current nuclear standoff against Western nations.  The United States and European Union present a greater deal of oil subsidy in exchange of Iran's uranium-enriched bombs.

For a year now, President Hassan Rouhani bids more time citing that it would take several months to a few years to process centrifuges into actual bombs.  November 24^th marks the deadline whether Iran would succumb to the demands of the West and vice versa.

Like Us on Facebook

Currently, Iran has 19,000 centrifuges, of which around 10,000 actually operates.  According to an Iranian news outlet, the U.S. allowed 4,000 of these centrifuges to go live, but the U.S. government refused to confirm exact numbers.

About 25 percent or US$80 per barrel has been slashed in Iran's oil price for the past few years and the decline is tantamount to some cutbacks in subsidies in gasoline and other utilities as well as the US$12 monthly cash flow for citizens.

Experts said Iran needs at least US$140 per barrel of oil price in order to balance its GDP.  Jamshid Edalatian, a member of the Chamber of Commerce in Tehran, added that if the government fails to seal the nuclear agreement, oil prices will continue to suffer and so their overall economy.

Foreign Minister Mohammad Javad Zarif expressed disappointment over the gravity of U.S. sanctions.  But whether or not Zarif and Rouhani would seal the deal, the ultimate decision lies with Iran's supreme leader Ayatollah Ali Khamenei, who is known to care less about its costs and benefits.

Mohammad Heydarian, a 46-year-old oil contractor, said he had fired some of his workers to cope up with overhead expenses and attend to his family's needs.  But despite cost-cutting measures, this father of two added that regression in Iran's economy poses more threats than opportunities.

As part of Iran's coping mechanism to cover for the US$2.25 billion loss, Rouhani announced Monday a series of financial strategies to continually fund civil engineering projects.

Tagspolitics, Business Finance, Economy of Iran