President Mahmoud Ahmadinejad of Iran said he had no intention of using oil as a weapon in his conflict with the United States, but if President Bush authorizes an attack on his nation, we “know how to react.” He claimed, “We would never want to use oil as a weapon or to take any illegal actions… but if American takes any action against us, we will know how to reply.” His comments came at the conclusion of an OPEC meeting at which Iran’s leader raised the issue of whether or not it was time to cease linking the price of oil to the American dollar. There are fears due to ambiguous comments from the Bush administration that the United States might take some offensive action against Iran which would probably result into an oil embargo or blocking of oil shipping channels. Ahmadinejad was hopeful and said, “my prediction is that no war will break out in the region.”
As a result of pressure from Venezuela and Iran, OPEC will examine its historic policy of linking oil prices to the American dollar. There is some feeling of pricing oil based on the euro. The fall of the American dollar has impacted oil producing nations because their price is based on the worth of the US dollar.