( CNN ) -- Iran 's finance minister believes oil prices could rise as high as $ 160 a barrel thanks to sanctions over its nuclear program , a prediction that comes just as the chief of the United Nations nuclear watchdog agency headed to Tehran on Sunday for high-level talks . `` We must pay close attention when we speak of oil revenues and sanctions against oil sales , who are the winners and the losers of such sanctions ? '' Shamseddin Hosseini told CNN 's `` Fareed Zakaria GPS '' in an interview that airs Sunday . `` Indeed , it is difficult . But not just for Iran . And we can all rest assured that there will be a considerable increase in international oil market prices . Now , is this the best approach ? '' The comments came as the International Atomic Energy Agency said in a carefully worded statement that its director-general , Yukiya Amano , was headed to Iran for talks on what it described only as `` issues of mutual interest with high Iranian officials . '' The trip raises speculation that Iran may be willing to grant IAEA inspectors access to sites to determine whether it is developing nuclear weapons . The talks come at a critical time for Iran , whose economy has been crippled by sanctions imposed by the United Nations , the United States and the European Union . Eighty percent of Iran 's foreign revenues are derived from oil exports , and an embargo by the EU set to go into effect in July will further devastate its economy . But Hosseini said the embargo would also likely hurt the EU , which is grappling with its own weakened economy . Oil prices as a result of the sanctions , he said , `` will go considerably higher than $ 100 per barrel . '' Even the International Monetary Fund `` says as a result of these sanctions , oil prices will perhaps reach and hover around $ 160 per barrel , '' he said . Hosseini gave little indication to Zakaria that Iran would be willing to abandon its nuclear program , which Tehran has consistently maintained is solely for the development of alternative energy . `` There are conversations and dialogues taking place currently , but there can not be a hegemony and a double-standard in the treatment of member countries such as Iran , '' he said . `` If these principles can be understood and applied with mutual respect , I think we will be in a much better place . If we do n't , we will witness a increase in international oil markets . '' The Iranians met with the IAEA for the first time in three months in Vienna , Austria , last week and are expected to meet again Monday . Later this week in Baghdad , Iran is set to continue talks over its nuclear program with world powers who make up the group known as P5+1 : the United States , France , Russia , China , Britain and Germany . Tensions over the country 's nuclear program have roiled the Middle East , with Iran threatening earlier this year to close the Strait of Hormuz , a vital oil shipping lane , if sanctions were imposed on its exports of crude oil . Meanwhile , Israel has said it may attack Iran to prevent it from developing nuclear weapons . During the height of tensions , oil prices soared to $ 110 a barrel . The price per barrel of crude oil finished last week at $ 92.50 per barrel . In March , the IAEA noted what it called a sharp and troubling increase in Iran 's uranium enrichment capabilities . The United States and its allies suspect that Iran is evading international inspections and is developing nuclear weapons . As punishment , Western nations have slapped crippling sanctions on Iran . Leaders of the so-called Group of Eight -- United States , Canada , the United Kingdom , Germany , France , Italy , Japan and Russia -- called on Iran on Saturday to comply with the requirements of the U.N. 's watchdog agency to open its doors to nuclear inspectors . In a declaration , the G8 leaders said they welcomed the resumption of talks . The leaders called on Iran to engage `` in detailed discussion about near-term , concrete steps that can , through a step-by-step approach based on reciprocity , lead towards a comprehensive negotiated solution which restores international confidence that Iran 's nuclear program is exclusively peaceful , '' according to the declaration . The G8 leaders also urged Iran to comply with international obligations to uphold human rights and fundamental freedoms , including the freedom of religion .
Iran 's finance minister tells CNN that oil prices could rise as high as $ 160 a barrel . `` Rest assured there will be a considerable increase , '' the minister says . The chief of the U.N. 's nuclear watchdog agency is heading to Iran for talks . G8 leaders urge Iran to cooperate with inspectors .