The decline of international crude oil prices has led to speculation about the financial position of the Iranian government. However, a closer look at government finances and overall trade and economic realities underlines that Iran’s vulnerability to oil price fluctuations is reduced enormously.
Some international observers and news media (including CNN) have been repeating a myth stating that Iran needed an oil price of $140 per barrel to balance its budget. Where such figures come from remains a mystery to the author.
