Iran: A Need for Budget Cuts

With worldwide energy consumption bottoming out and the price of oil hovering between $45 and $55 a barrel, a country like Iran — highly dependent on oil revenues — has little choice but to cut back on its spendthrift ways. Iran has an expensive set of priorities to fund across the region, and STRATFOR has received indications that Iran is unable to follow through on its financial commitment to a key proxy, Hezbollah. Meanwhile, countries with petrodollars to spare will be doing their part to contain Iran's rise.