Tehran (AFP) - President Hassan Rouhani said Tuesday that Iran would withstand the economic pain of plummeting oil prices, with Saudi Arabia and Kuwait likely to suffer more from the slump.

Iran has been among the oil exporting countries worst hit by the sliding price of crude, given its current budget was based on sales at $100 per barrel.

In a draft plan for the next financial year starting March 21, Rouhani's government cut the projected sale price to $72 but oil has continued to dive toward a six-year low, raising the prospect of a ballooning deficit in Tehran.

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"Those that have planned to decrease the prices against other countries will regret this decision," Rouhani said in a speech broadcast on state television as oil plunged to near six year lows on international markets.

"If Iran suffers from the drop in oil prices, know that other oil-producing countries such as Saudi Arabia and Kuwait will suffer more than Iran," he added.

Rouhani, stating that oil was projected to account for only one third of Tehran's revenues in the next budget, said Saudi Arabia and fellow Gulf state Kuwait "will be harmed more than Iran".

"Saudi Arabia's budget reliance on oil sales is 80 percent and 90 percent of its annual exports are related to oil. Kuwait's budget is 95 percent reliant on oil," he told a crowd in the southern port city of Bushehr in a speech shown live on state television.


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