Iranian Leaders React to Increasing Pain of Economic Sanctions

23 July 2010

Iranian Supreme leader Ayatollah Ali Khamenei (file photo)

As new U.S. and U.N. economic sanctions step up the pressure on Iran's economy, Supreme Leader Ayatollah Ali Khamenei is urging his countrymen to change their habits. Fars News Agency reports that the Ayatollah wants Iranians to work harder, use more initiative and be more creative.

Top Iranian vice president Mohammad Reza Rahimi also told journalists Friday that the government was planning to stop selling oil in euros and dollars. Iran has threatened to stop selling oil in dollars, before, but with limited success. It was the first time that Tehran has threatened to stop using the euro.

European Union ambassadors, meeting in Brussels, agreed Thursday to a new package of sanctions targeting Iran's energy sector. The sanctions must be approved Monday at a meeting of EU foreign ministers. The U.N. and U.S. imposed fresh sanctions on Iran, last month, to force it to stop enriching uranium for its controversial nuclear program.

An Iranian delegation, including Oil Minister Massoud Mir-Kazemi, met with Turkish counterparts in Ankara this week, to sign a deal to build a new natural gas pipeline and to increase gas sales to Turkey. Iran signed a similar deal with Pakistan, last month, although it is not clear if it will be implemented.

Deputy Oil Minister and head of the National Iranian Gas Company Javad Owji describes the deal.