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Amid Tensions with Saudi Arabia, Grim News for Iran's Economy
(Wall Street Journal) Mark Dubowitz - The recent spike in Saudi oil production - from 9.6 million barrels per day in November 2014 to 10.2 million barrels per day one year later - has ensured that Iran will return to a depressed global oil market. Crude oil prices are around $37 a barrel, roughly a third of the rate when sanctions were imposed in January 2013. So long as Riyadh is willing to run budget deficits to keep oil prices low, Tehran will get only about half of the oil price to which it pegged its budget last year. The writer is executive director of the Foundation for Defense of Democracies.