CBC: Obama to proceed with Iran embargo

jolepp · 03-30-2012, 01:25 PM

Quote:

President Barack Obama is moving ahead with tough new sanctions aimed at squeezing Iran's oil exports after determining there is enough crude on world markets to take the step without harming U.S. allies, The Associated Press has learned.
...
U.S. officials hope ratcheting up economic pressure will both push Iran to abandon its disputed nuclear program and convince Israel to give sanctions time to take hold before pursuing a military strike on Iran's nuclear facilities. The U.S. and allies believe that Iran is pursuing a nuclear bomb; Iran denies that.

The congressionally mandated sanctions target foreign financial institutions that do business with Iran's central bank —barring them from operating in the U.S. to buy or sell Iranian oil. The penalties are to take effect at the end of June, around the same time Europe's embargo on Iranian oil kicks in.

Countries can still avoid the sanctions if they take steps to significantly reduce their imports before then.

Under a sweeping defense bill Obama signed at the end of December, the president had until Friday to determine if there was enough oil supply on the world market to allow countries to cut their oil purchases from Iran. A formal White House statement was expected later Friday.
...

Obama to proceed with Iran embargo - World - CBC News

ihasa · 03-30-2012, 02:18 PM

I don't think it will have much effect, other than pushing up oil prices and pissing them off.

jolepp · 03-30-2012, 02:52 PM

Iran can probably find buyers for the oil which is a commodity after all. In theory the US could act against the buyers, but if those are, say China or India that would seem unlikely. All Iranian commerce will suffer though as Iran is to be cut off from SWIFT and with that from the global banking system. According to a local newspaper this would mean that accounts with Iran would need to settled in gold (this could also mean bilateral trade agreements where accounts are settled by matching imports and exports in the long run?).

03-30-2012, 01:25 PM	#1
jolepp Veteran Member Join Date: Oct 2010 Location: Finland Photos: Albums Posts: 3,196	CBC: Obama to proceed with Iran embargo Quote: President Barack Obama is moving ahead with tough new sanctions aimed at squeezing Iran's oil exports after determining there is enough crude on world markets to take the step without harming U.S. allies, The Associated Press has learned. ... U.S. officials hope ratcheting up economic pressure will both push Iran to abandon its disputed nuclear program and convince Israel to give sanctions time to take hold before pursuing a military strike on Iran's nuclear facilities. The U.S. and allies believe that Iran is pursuing a nuclear bomb; Iran denies that. The congressionally mandated sanctions target foreign financial institutions that do business with Iran's central bank —barring them from operating in the U.S. to buy or sell Iranian oil. The penalties are to take effect at the end of June, around the same time Europe's embargo on Iranian oil kicks in. Countries can still avoid the sanctions if they take steps to significantly reduce their imports before then. Under a sweeping defense bill Obama signed at the end of December, the president had until Friday to determine if there was enough oil supply on the world market to allow countries to cut their oil purchases from Iran. A formal White House statement was expected later Friday. ... Obama to proceed with Iran embargo - World - CBC News

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03-30-2012, 02:18 PM	#2
ihasa Veteran Member Join Date: Jul 2009 Location: West Midlands Photos: Gallery Posts: 2,066	I don't think it will have much effect, other than pushing up oil prices and pissing them off.

03-30-2012, 02:52 PM	#3
jolepp Veteran Member Join Date: Oct 2010 Location: Finland Photos: Albums Posts: 3,196 Original Poster	Iran can probably find buyers for the oil which is a commodity after all. In theory the US could act against the buyers, but if those are, say China or India that would seem unlikely. All Iranian commerce will suffer though as Iran is to be cut off from SWIFT and with that from the global banking system. According to a local newspaper this would mean that accounts with Iran would need to settled in gold (this could also mean bilateral trade agreements where accounts are settled by matching imports and exports in the long run?).