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Iran shrugs off sanctions threat over atomic plans

(Agencies)
Updated: 2008-02-25 23:59

TEHRAN - Iran voiced defiance on Monday as Western powers pushed for new sanctions over its nuclear program, saying high oil prices will cushion the blow.

The United States, Britain and France are pushing for a United Nations Security Council vote on a third round of sanctions this week because they fear Iran seeks an atomic bomb.

But an Iranian minister was quoted as saying the economy of the world's fourth-largest oil producer would not be hurt.

"New sanctions will not harm Iran's economy ... High oil prices will help Iran to compensate," Economy and Finance Minister Davoud Danesh-Jafari was quoted by the students' news agency ISNA as saying.

Danesh-Jafari was speaking hours before senior diplomats from Britain, France, Germany, the United States, China and Russia were due to meet in Washington to discuss their next moves on Iran's nuclear program.

Iranian President Mahmoud Ahmadinejad, whose country denies wanting nuclear weapons, said on Saturday world powers could pass sanctions resolutions for 100 years without deterring Tehran from its nuclear work.

Iran has also warned Western powers they would be the ones to suffer if new sanctions were imposed on Tehran, which has resisted any OPEC oil output increase to bring down prices from above $99 a barrel. Tehran has even supported an output cut.

Oil prices surged to a record high above $100 a barrel last week. The oil exporters' group OPEC next meets on March 5.

Mohammad Ali Khatibi, deputy director of international affairs at the National Iranian Oil Company, said he saw no reason for OPEC oil producing countries to raise output as market supplies of crude were sufficient.

Time 'not on West's side'

As Western powers push for new sanctions, time is not on their side, Washington's ambassador to the United Nations, Zalmay Khalilzad, was quoted as saying by a French newspaper.

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