Iran wants oil payments to be made in Euros and not US dollars

Iran Oil sales in Euros

Officials in Iran are preparing to sell their oil to the world again, however, the country’s government is asking for payment in Euro’s instead of US dollars.

“Our top priority is to receive cash and oil [payments] in euro,” Safar-Ali Karamati, a deputy director at the National Iranian Oil Company, told an Iran news outlet on Saturday.

Iran has tried to move away from the US dollar on several other occasions, however, the world’s oil supply is traded in US dollars which makes its new request more complicated.

“Iran has long attempted to switch to euros or other local currencies for its exports for several reasons including Tehran’s deep-rooted animosity toward the U.S.,” Majid Rafizadeh, a Middle East scholar at Harvard University, told CNNMoney

The demand for Euro payments is also a likely an attempt to decrease the shock in Iran should the US decide to impose more sanctions on the country at a later date.

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Moving to the Euro could actually create economic hardships for Iran. Many firms are predicting that the Euro will continue to decline in value against the US dollar, making each barrel of oil worth significantly less money.

While many European companies have struck deals with Iran in recent weeks, many US sanctions still remain in place.

In its attempts to continue its move away from US-based goods and services, Iran ordered 118 new planes from France’s Airbus instead of approaching US supplier Boeing.

Written by Jeff Springer

Jeff Springer

Jeff Spring is the Finance & Markets Editor at BusinessPundit.com. He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated. He can be reached at JeffSpringer@BusinessPundit.com