Tag Archives: iran
Iran to tell EU you don’t have six months to find alternative oil
Iran is about to call the EUs bluff on its recently passed oil sanctions.
Deputy head of the Iranian Majlis (parliament) National Security and Foreign Policy Committee Hossein Ebrahimi said on Friday that Iranian lawmakers would debate a “double-urgency” bill on Sunday which calls for the ban of oil exports to Europe as early as next week.
The move comes after EU foreign ministers reached an agreement in Brussels on Monday to impose sanctions on oil imports from Iran as of July 1. The sanctions involve an immediate ban on all new oil contracts with the Islamic Republic and freezing the assets of the Central Bank of Iran (CBI) within the EU.
The Majlis motion would deny Europe the six-month phase-in period that the bloc has considered to adjust and find alternative sources to Iran’s crude.
The recent EU sanctions on Iranian oil are merely a “psychological warfare,” as the 27-member bloc is delaying the implementation of the embargoes under various pretexts, Ebrahimi added.
The EU accounted for 18 percent of Iranian crude oil sales in the first half of 2011, according to the US Energy Information Administration (EIA), making it Iran’s second biggest customer after China.
The EU oil sanctions came after US President Barack Obama signed into law fresh unilateral economic embargoes against the Central Bank of Iran on New Year’s Eve in an apparent bid to punish foreign companies and banks that do business with the Iranian financial institution. That bill ultimately takes aim at Iran’s oil revenue.
So my advice to Cameron would be this. Think long and hard about the billions you are about to commit to propping up a dead duck Eurozone, because you are going to need it propping up the UK oil supplies. There is about to be a massive increase in price and a scramble to find supplies.
If there is one thing that will get the people out onto the streets will be a lack of oil. No petrol or fuel oil just as the winter weather is about to blast across the UK may be enough to kick off a real revolt.