Iran Leads Oil Price Rise

February, 25, 1971 A.D.:
Iran Leads Oil Price Rise

By: Mir M.Hosseini

Jamshid Amouzegar, finance minister of Mohammad Reza Shah received a a first class Taj medal as a reward for leading the six oil-producing nations of the Persian Gulf: Iran, Iraq, Kuwait, Saudi Arabia, Abu Dhabi and Qatar in wresting an increase in payments from 23 international oil companies, 20 of them American. Shah felt pleased as well.
The accord ended a month of negotiations in Tehran. Shah had established himself as leader of the world's oil-producing nations and changed the balance of power between oil-producing and consuming countries. Under the stiff provisions of a new, five-year pact, the posted price of Persian Gulf oil-on which royalties and taxes were calculated would rise by 35¢ per bbl. The agreement was expected to bring the gulf countries an extra $10 billion in oil income over the following five years.
In the Tehran agreement, the oil companies gained a pledge from Persian Gulf states not to raise prices again for five years.

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KEY TERMS:Abu Dhabi , American , Arab , Arabia , Iran , Iraq , Jamshid , Jamshid Amouzegar , Kuwait , Mohammad Reza Shah , Persia , Persian , Persian Gulf , Qatar , Reza Shah , Saudi , Saudi Arabia , Shah , Tehran

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