Mashhad Prayer Leader Ayatollah Ahmad Alamolhoda

Guided by the Supreme Leader’s office, Iran’s clerics have said there is no problem with US sanctions as the country does not depend on oil income.

The Friday Prayer leaders followed Ayatollah Khamenei in responding to this week’s announcement by the Trump Administration that it is ending sanctions waivers in May for leading purchasers of Iranian oil such as China, India, South Korea, Japan, and Turkey.

Iran Daily, April 23: US Ends Sanctions Waivers for Tehran’s Oil

In Iran’s second city Mashhad, Ayatollah Ahmad Alamolhoda said, “We depend on God, Islam, the Quran…and the prayers of the Supreme Leader — not on oil, mines, resources, and international markets.”

He claimed that an end to oil sales would not cause economic problems, as dependence on oil revenue can be reduced to 4% of the economy.

Iran’s dependence has been between 40% and 60%. The current Government budget sets out about one-third of its income from oil exports — $24 billion, roughly the amount allocated to payments for State employees and pensioners.

Friday Prayer leaders in Shiraz, Tabriz and other cities also told audiences not to worry about loss of oil income.

Iran’s oil exports have fallen almost 60% since April 2018, from 2.5 million barrels per day to about 1.1 million bpd. The economy is struggling with production; investment; trade; rising unemployment, especially among youth; and a historically-weak currency.

But on Wednesday the Supreme Leader maintained, “We are able to export as much oil as we need and wish….In economic issues, [the Trump Administration] says they want to bring Iranian nation to its knees; but they must know Iranians won’t give in.”

Iran Daily, April 24: Supreme Leader — We Will Export As Much Oil As We Want

“Saudi Arabia and UAE Can’t Cover Our Oil Exports”

The clerics also echoed the line of Oil Minister Bijan Zanganeh that production from Saudi Arabia and the UAE cannot cover the loss of Iranian exports on the international market.

Iranian officials have repeatedly responded to US sanctions by claiming there will be a sharp spike in global oil prices.

The current Brent oil price is just under $72 per barrel, about $15 higher from its average price this year.

Zanganeh said Friday about the Gulf States, “I believe they are overstating their oil capacities,”