Ramezanali Sangdovini said the Organization of the Petroleum Exporting Countries has played an important role in global oil markets by coordinating members’ policies and managing supply levels.

“Through coordinated policies and supply management, OPEC has at various times helped prevent severe price shocks and market instability,” Sangdovini said.

He said the importance of OPEC’s role is underscored by oil’s continued position as one of the world’s main energy sources. Major disruptions to oil supplies can affect the global economy, inflation, transportation and countries’ energy security, he added.

The formation of OPEC+ also demonstrated that oil-producing countries continue to need coordinated mechanisms to manage the market, Sangdovini said.

Cooperation among major producers has strengthened their ability to adjust supply and promote a balance between producers’ and consumers’ interests, he added.

Sangdovini said OPEC now faces challenges including the expansion of renewable energy, the energy transition, changing consumption patterns and geopolitical pressures.

Maintaining the organization’s influence will therefore require flexibility, cohesion among its members and a clear understanding of developments in global markets, he said.

“OPEC, after 66 years, remains one of the main pillars of global oil market governance,” Sangdovini said, warning that weakening or eliminating its role could increase volatility and uncertainty in energy markets.

For Iran, active and influential participation in OPEC is strategically important, he said, adding that the organization serves not only as an economic institution but also as an important platform for strengthening energy diplomacy and preserving Iran’s position in global oil affairs.