Presenting a Model for Iran's Oil Diplomacy in Order to Reduce Vulnerability to Oil Sanctions

Document Type : Original Article

Authors

1 Ph.D. in Financial management, Faculty of Management and Accounting, Allameh Tabatabai University, Tehran, Iran.

2 M.A. in Socio-Economic Systems Engineering, Faculty of Industrial Engineering and Management, Mazandaran University of Science and Technology, Babol, Iran.

Abstract

Given Iran's dependence on oil revenues, oil sanctions have always been used as an effective tool for exerting pressure on the Islamic Republic of Iran. Amidst such these circumstances, it is necessary to adapt appropriate means in terms of oil diplomacy to counteract this economic pressure and thus reduce the effects of oil sanctions. In line with this objective, this study attempts to identify and prioritize the requirements for adopting a suitable oil diplomacy for Iran. To achieve this purpose, this paper first presents a review of the current literature on the subject and uses the SWOT matrix to characterize the experience of Iran and selected countries, and subsequently, ranks the possible strategies for Iran by drawing on expert opinions and utilizing the FAHP method. Based on the results of this study, the three optimal strategies are, "Focusing on the export of petrochemical and petroleum products", "Making oil contracts attractive" and "Implementation of monetary agreements and removal of the US dollar from foreign exchange reserves", respectively. These strategies are believed to be the most effective options for reducing the pressures caused by oil sanctions.

Keywords

Defense Economics and Sustainable Development
Volume 6, Issue 21
December 2021
Pages 61-87

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