In Tehran, the November 30 decision by OPEC to cut oil production by member states was predictably a big deal. This, however, was not just about the economics of the event. Sure, the price of crude oil shot up by 10% on the announcement. It was the first time in eight years that OPEC states had agreed to a collective production cut.
But in Tehran, the other big news was that Iran – OPEC’s third-biggest producer – had escaped the call for it to cut back its production. On the other hand, Iran’s biggest regional rival, Saudi Arabia, agreed to a steep cut.