Saudi Arabia says prepared to mitigate impact of Iran oil sanctions

Saudi Arabia on Wednesday said it supports President Donald Trump’s decision to withdraw from the US from the Iran nuclear deal.

The Kingdom also voiced its support towards reinstating economic sanctions against Tehran, which were suspended under the nuclear deal agreed on in 2015, a statement on the official Saudi Press Agency (SPA) said.

In a separate statement on SPA, Saudi Arabia said it will work with OPEC and non-OPEC producers to mitigate the impact of any shortage in oil supplies, following the US decision.

“Following the US decision to withdraw from the nuclear agreement with Iran, Saudi Arabia is committed to supporting the stability of oil markets for the benefit of producers and consumers and the sustainability of the global economic growth,” a spokesman of the Ministry of Energy, Industry and Mineral Resources said in the statement.

Trump on Tuesday abandoned the international nuclear deal with Iran, raising the possibility of slowing down supply from the OPEC state.

The agreement – which included the US, five other countries and Iran – lifted sanctions on Iran in exchange for Tehran limiting its nuclear program. The deal was aimed at preventing Iran from obtaining a nuclear bomb.

Meanwhile, OPEC Secretary General Mohammad Barkindo told CNNMoney in an interview that the US decision would harm global economy.

“Whatever extraneous factor that affects supply or demand, will no doubt send the market into disequilibrium, which is not in the interest of producers, or the interest of consumers,” he said when asked about the consequences of ditching the Iran nuclear agreement.