This market is highly volatile, and there’s no guarantee it will bounce back. However, if you have a long-term investment horizon and are ready to invest in the short term, IR is the right choice. Here’s how you can do it. Here’s how. You’ll be amazed at the return on your investment.
In 1979, the Islamic Revolution took place in Iran, and it disrupted its oil production. The world oil price exploded, causing panic. That crisis hit the international oil market twice within a decade. In 1982, the Camp David Accords and the peace treaty between Egypt and Israel broke down the political co-operation and alliances that had shaped Middle Eastern politics. By the 1990s, the overthrowable Shah government put an end to Iran’s strategic partnership with the Soviet Union.
The oil industry was nationalized by Iranian Prime Minister Mohammed Mossadegh to protect it from the AIOC. After the overthrow of the Shah government, the Iranian oil industry was put under the control of the government. It was nationalized to keep Iran from being sacked by the Soviet Union. Moreover, this move ended Iran’s alliance with the Soviet Union, which had been in the process of forming a new government.
In 1981, the Islamic Revolution shook the global oil industry. As a result, oil prices in the world market increased, and panic was halted. As the world oil industry suffered its second crisis in the same decade, the Iranian economy was crippled by the overthrow of the Shah government. Similarly, Saudi Arabia’s strategic dominance in the Middle East was also broken. By then, the international oil industry was already in decline mode.
Since the Iranian revolution, the country’s oil industry has been in transition. Its nationalization was to protect Iran from AIOC. The OPEC was a major customer. In the 1980s, the countries that were not members of OPEC were also OPEC. This has caused significant changes in the market. Until now, 80 percent of OPEC’s exports have been purchased by Western countries.
In the 1980s, the government of Iran nationalized its oil industry to protect the country from the exploitation by foreign corporations. The deal shook the world oil market. The Iranians had to sell their oil to avoid being cut off. Their new government had no incentive to negotiate with OPEC. OPEC, which had a free oil market, was the dominant country. Its new regime was a success.
The 1973 Arab-Israeli war disrupted the world oil market. The Iranian Revolution was a shock to the oil market. In the early 80s, OPEC and the US dominated the world. By the end of the 1970s, the market changed dramatically. OPEC governments acquired total control over oil reserves and production levels. The prices in the world ir oil market were determined by their regional politics. A severe economic depression in the West would result in a radically different political structure and power balance.