Interaction between Oil and Foreign Policy in the Islamic Republic of Iran: A Detente Approach

Given Iran’s long-time reliance on the production and export of oil, and its prominent position in OPEC, it would go without saying that there exists an inevitable close link between Iran’s oil policy its foreign policy. Analysis of the past approaches and policies indicate that the optimal situation has been achieved whenever foreign policy has been orientated in such a manner as to make the most out of compatibility with the rules and regulations of the international system. The same also applies to Iran’s international and regional cooperation. While maintaining its traditional prominent position within OPEC, including in terms of the level of production and export, Iran should undertake to enhance its productive capacity and ensure economic development with a view to preserving its dominant regional position. This article looks into the links between the oil and foreign policy of Iran during the 1997-2005 period.