Iran intends to expand USD400bn oil agreement with China: envoy

ISLAMABAD: In a bid to stabilise the embattled Iranian rial and bolster its flagging economy, Iran’s Ambassador to Pakistan, Dr Reza Amiri Moghaddam, stated on Thursday that Tehran intends to expand its landmark 25-year oil agreement of USD 400 billion with China.

The strategic move aims to diversify Iran’s economic partnerships as the country grapples with the compounded effects of prolonged economic sanctions and internal unrest.

Speaking at a press conference, Dr Moghaddam elaborated on the urgent steps Iran has taken to curb the rapid depreciation of its currency, which has been under severe pressure due to mounting economic difficulties.

He highlighted that expanding the Sino-Iranian oil deal would be vital in alleviating the impact of Western sanctions, revitalising Iran’s oil exports, and strengthening both its financial position and currency.

“We have implemented a series of economic ‘surgical measures’ to address the challenges posed by the sanctions, which have been in place for four decades,” he explained.

He said the expansion of the oil deal with China is a key part of a broader strategy to safeguard Iran’s economy and its citizens, blaming the recent unrest on attempts by the US and Israel to undermine Iran’s economic measures – efforts, he added, that were rejected by the Iranian people, who rallied in defence of their nation.

Dr Moghaddam’s comments come amidst heightened tensions in Iran, where a surge of protests has rocked the streets, driven by widespread dissatisfaction over soaring inflation and economic hardship.

While acknowledging the unrest, the ambassador painted the protests as part of a broader, covert campaign orchestrated by the United States and Israel, which he accused of deliberately stoking instability to further undermine Iran’s economic stability.

“The recent protests were not just an internal issue; they were part of a well-coordinated plan led by the US and Israel to destabilise Iran, as evidenced by tweets from Trump, Netanyahu, and even former US Secretary of State Mike Pompeo,” he said.

“These countries have spent decades employing various methods to harm Iran, including economic sanctions, propaganda tools, and efforts to incite public unrest.”

The Iranian top diplomat once again pointed the finger at the US and Israel, alleging that foreign powers had orchestrated the unrest and that some of those detained during the protests had confessed to being linked to foreign-backed efforts to destabilise Iran.

“The protests were not a spontaneous uprising; they were part of a larger foreign-backed plan,” he reiterated. “The Iranian people saw through these external plots and stood firm in defence of their country’s dignity.”

He also addressed the demands of protestors, stating that the Iranian government engaged in discussions with protest representatives to address their grievances.

He stated that those whose property was damaged during the violence – allegedly stoked by foreign interference – would be compensated.

While asserting that Iran respects the right to peaceful protest, he condemned the destruction of public property and violence that had marred recent demonstrations.

“Iran’s government is focused on addressing the economic challenges and offering compensation where it is due. But let me be clear, any form of violence, especially when driven by foreign influence, will not be tolerated,” he stated.

Copyright Business Recorder, 2026