Iran and Venezuela Collaborate to 'Neutralize' Oil Price Drop Threat

According to AFP, the leaders of Iran and Venezuela pledged during their recent meetings in Tehran to 'neutralize' the threats posed by the sharp decline in oil prices for both countries. Nicolás Maduro, the President of Venezuela, who arrived in Tehran on Friday night, met with Ayatollah Khamenei and Hassan Rouhani on Saturday, January 20, before heading to Saudi Arabia. Ayatollah Khamenei emphasized Iran's 'decisive decision' to increase cooperation with Venezuela and described 'enemies' as the cause of the severe drop in oil prices. According to the Islamic Republic Leader's website, Maduro stated in his meeting with Khamenei that he is working to create a consensus among OPEC member countries and non-member oil-exporting countries, including Russia, to control oil prices. Khamenei also stressed Iran's 'decisive decision' to enhance comprehensive cooperation with Venezuela, stating that 'our common enemies use oil as a political weapon and are certainly involved in this sharp decline in oil prices.' Khamenei did not limit the cooperation between the two countries to oil issues and called for an increase in trade and investments between the two nations. Earlier, Nicolás Maduro had met with Hassan Rouhani, the President of Iran. According to the government’s website, Rouhani stated in this meeting that 'without a doubt, cooperation among like-minded countries in OPEC can help stabilize an acceptable oil price in 2015 by neutralizing the plans of certain powers against OPEC.' Reuters reported that the sharp decline in oil prices has led Maduro's government to resort to using the country's foreign currency reserves, raising concerns that Venezuela may not be able to meet its foreign bond interest payments.