TEHRAN, Feb. 20 (UPI) -- Iran has launched an oil exchange in the Persian Gulf economic free zone island of Kish.

The exchange is based on world oil exchanges. It has been planned for years but faced repeated delays, the Malaysia Sun reported.

Iranian Oil Minister Gholamhossein Nozari said oil trading would make Iran more competent as a supplier and ready to begin the supply of crude oil in the long term.

When plans were first announced, some analysts speculated Iran might use it to undermine the U.S. dollar by pricing crude in euros or other currencies.

Oil and petrochemical products will be traded in Iranian rials, as well as all other hard currencies, the statement quoted Nozari as saying.