Economic Strength and Strategy of the Islamic Republic of Iran in the Oil Market

Resistance economy is a new concept that was introduced by the Supreme Leader (Zillah high fashion) after the escalation of hostilities (with a focus on the United States) against the country. Surely the oil sector is one of the most important economic sectors in Iran that is always exposed to contract’s risk. This article focuses on recognition and changes in the global oil market. This study also analysis the activities of United States and Saudi Arabia as two influential countries and identify the challenges of dependence on oil sector. To deal with hostile activities of the United States and Saudi Arabia in the oil market, this paper suggests some strategies that are consistent with the resistance economy framework. These strategies include :Withdrawal from OPEC, expansion of energy diplomacy, optimal use of privileged capacity of resistance economy, applying policies to make Iran’s oil irreplaceable in strategic customers’ markets (If there is an emphasis on continuing of oil exporting in Iran, Inter-generational justice and the preservation of principal, applying all facilities to avoid selling crude oil and export processing products of petroleum, avoid the unnecessary import and emphasis on domestic production, improving production infrastructure and help to change in the production strategy from traditional processes to the knowledge-based plans, to reduce the dependency on the oil income in government budget and stability in the foreign exchange reserve by proper managing of this reserve (or National Development Fund) and ultimately prevent the spread of government involvement in the economy and transfer economic affairs to the private sector.