In a show of bravado to Western countries imposing sanctions, Iran has announced that it is ready to export jet fuel to neighboring countries.
National Iranian Oil Refining and Distribution Company managing director Alireza Zeiqami told reporters, "We are prepared to export jet fuel to the neighboring states," stressing that the country "is not faced with any problem in the production and storage of jet fuel," Fars News Agency reported.
The announcement comes in the wake of increased sanctions ratified by the U.N. Security Council against Iran on 9 June, after which the U.S. Senate passed legislation to expand sanctions on foreign companies that invest in Iran's energy sector, those selling refined petroleum to Iran and companies helping Tehran to develop its refining capacity.
The U.S. House of Representatives also passed the legislation, which was then signed into law by President Obama. The legislation stipulated that companies that continue to sell gasoline and other refined oil products to Iran would be barred from receiving Energy Department contracts to deliver crude to the U.S. Strategic Petroleum Reserve.
Fuel and oil comprise 25 percent of civilian airlines’ operating costs. When the price of jet fuel rises one cent, it increases the global cost of aviation $195 million. In 2008, every dollar increase per barrel added an additional $464 million in fuel expenses for U.S. passenger and cargo airlines.
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com