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WORLD> Middle East
Iran says any attack would provoke fierce reaction
(Agencies)
Updated: 2008-07-02 21:57

MADRID, Spain -- An attack on Iran would provoke a fierce response, the country's oil minister warned Wednesday at the World Petroleum Congress in Madrid.


A person walks by a photo of a refinery at the World Petroleum Congress in Madrid, Tuesday, July 1, 2008. Oil supplies will remain tight despite record prices and reduced demand from industrialized countries because China and other emerging economies will consume more crude to feed their booming economies, the International Energy Agency said Tuesday. [Agencies]

Minister Gholam Hossein Nozari, however, said Tehran would not cut oil deliveries and would continue supplying the market even if struck by Israel or the United States.

Tehran "is not going to be quiet," if attacked, Nozari told reporters. It's "going to react fiercely, and nobody can imagine what would be the reaction of Iran," he added.

Nozari spoke outside the 19th World Petroleum Congress after a presentation on Iran's oil and gas industry to a packed audience, including representatives of European and US energy companies.

Tehran is under UN, US and European sanctions because it has defied UN Security Council demands to suspend its uranium enrichment program. But with oil supplies tight and prices at unprecedented levels, the energy industry remains tempted by the possibilities of investing in Iran, OPEC's second largest oil producer and No. 2 in terms of the world's natural gas reserves.

President Bush has repeatedly said that a military strike on Tehran is possible as a last-resort if Iran continues to pursues uranium enrichment and fails to heed other Security Council demands. Israel too has warned that it is ready to hit the Islamic Republic's nuclear installations.

ABC News quoted an unnamed senior Pentagon official warning of an "increasing likelihood" that Israel will strike Iran's nuclear facilities before the end of the year. Such an attack could prompt Iran to retaliate, potentially disrupting oil shipments from the strategically vital Persian Gulf.

Nozari said such any attack would send oil prices further into uncharted territory.

"We don't think the wise people in the world even think about any action like that," he said. "Can you imagine ... what would be the result in the oil market?"

Oil prices hit a record high above $143 this week.

But Nozari indicated Iran would not withhold its crude from the market even if attacked, although other officials have indicated otherwise.

"Iran has always been a reliable source of supply to the market, and Iran remains a (reliable) source of supply," he said.

He dismissed suggestions that the standoff over Iran's nuclear program has diminished Iran's oil and gas exports, despite US sanctions that prohibit American companies from doing business with Tehran and growing pressure from Washington on other countries to follow suit.

"We have increased our production in the past two years by 250,000 barrels a day and we have added to the production of our gas," he told the AP.

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