Oil prices get boost as Iran praises Saudi plan to freeze output

Iran has given a significant boost to oil prices by unexpectedly praising a plan put forward by Saudi Arabia and Russia to freeze production.

The cost of Brent crude soared by 6.7% to $34.35 as Iran gave its verbal support for a production ceiling, even though it avoided making any immediate commitment to rein in its own growing output.

“Iran backs any measures which help stabilise the market and improve the price of crude oil,” said Bijan Zanganeh, the Iranian oil minister, after meeting his counterparts from Iraq, Qatar and Venezuela.

But he did not mention any specific change in his own country’s production strategy and other officials insisted that fellow-Opec members were aware Iran needed to increase its output to help rebuild the economy after years of sanctions.

Saudi Arabia, the lead producer and power broker inside the Opec cartel, had agreed with non-Opec Russia to freeze production at January levels to counter an oil glut – but only if other major oil nations did the same.