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Iranian regime to adjust budget based on oil price at $70 a barrel

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Iran has been forced to adjust its budget for next year based on a plunging oil price as the regime’s economy spirals into chaos.

Minister of Finance and Economic Affairs Ali Tayebnia said the national budget bill for the Iranian calendar year 1394 (March 2015-March 2016) will be based on an oil priced at $70 a barrel and a currency exchange rate of 26,500 rials to one US dollar.

The rial currently trades at around 32,600 to the dollar on the free market.

Iran’s national budget for the current Iranian calendar year had been based on an oil price of $100 per barrel and exports of about one million barrels per day.

The sharp dip in the oil price, now at below $80 a barrel, has dramatically worsened the regime’s budget deficit.

Some experts estimate the oil price could fall to $50 per barrel in 2015, spelling further misery for the Iranian economy.