NEW DELHI, 3 May 2006 — Visiting Iranian Deputy Oil Minister Hadi Nejad Hosseinian said yesterday that Iran would continue exporting oil even if its nuclear facilities are attacked by the United States. “We don’t use oil as a weapon,” he said.

Washington has accused Iran of involvement in a clandestine atomic weapons program. Tehran says it is pursuing a peaceful nuclear energy program.

Hosseinian is also hopeful that the United Nations will not impose sanctions on Iran’s oil and gas industry over Tehran’s decision to enrich uranium, a key step in making weapons-grade nuclear material.

“There is some possibility,” Hosseinian told reporters when asked if he expected a US attack because of the standoff. “I am worried. Everybody is worried,” he said.

Concerns that Iran’s dispute with the West could lead to disruption of its oil output pushed oil prices above $74 a barrel yesterday, close to the record of $75.35 US crude touched last month.

Hosseinian said crude prices could exceed $100 a barrel by winter as supplies could not be increased in the short term. But Tehran did not plan to use oil as a weapon in dealing with Western pressure, said Hosseinian, Iran’s former ambassador to the United Nations.

The minister made these comments after talks with Indian officials on an Iran-Pakistan-India gas pipeline project. He arrived here on Monday evening after holding talks on the project in Pakistan and met Indian Petroleum Minister Murli Deora yesterday.

Dismissing media reports that said Iran and Pakistan had left India in the cold with regard to the tri-lateral pipeline project, Hosseinian asserted that India very much remained a part of the project. If this project takes off as planned, depending on demand, the three partners may build a parallel pipeline, Hosseinian said. With the pipeline having a capacity of 110 million standard cubic meters per day, for meeting further demand, a parallel pipeline may be laid, he said.

Hosseinian also signaled that Iran was not likely to wait more than three months to finalize the $7 billion deal at the trilateral level. If the deal is not finalized by July, Iran would pursue bilateral exports to Pakistan.

Deora ruled out the possibility of India backtracking from the project because of US pressure. “I don’t think America is pressuring us on the issue. I think America cannot pressure us (to walk out of the project),” Deora said. “We are very serious on this issue and its not me but the prime minister, who made the statement that the pipeline is for peace and progress of the region,” he said.

The issues discussed yesterday by the two sides included gas pricing and project framework. Indian officials are of the opinion that Iran was seeking a higher price for LNG (liquefied natural gas), which New Delhi is not willing to renegotiate. Hosseinian acknowledged that some differences remain between the two sides on pricing.

India is also a little concerned about Hosseinian’s comment that the trilateral project, still in the stage of negotiations, will finally need the Supreme Council’s endorsement. Even after the three countries ink the deal in June, the Council could nullify it, Hosseinian said. He did not, however, elaborate on this. The June 2005 deal between National Iranian Gas Export Company and IOC-GAIL-BPCL also needs ratification by the Council. “Since it has not been ratified, as far as we are concerned the contract cannot be implemented,” Hosseinian said.