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Iran to take Action Against the West by Banning Oil Exports to the EU?

Following the recent agreement by the EU to impose trade sanctions against Iran the Iranian parliament will debate a law that could halt all oil exports to the continent.

"On Sunday, parliament will have to approve a 'double emergency' bill calling for a halt in the export of Iranian oil to Europe starting next week," Hossein Ibrahimi, vice-chairman of parliament's national security and foreign policy committee, was quoted as saying.

The EU accounted for 18 per cent 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. Deliberately declining that sort of revenue to their already struggling economy is a bold ploy, but seems to me a bit like cutting off your nose to spite your face.

Although having said that it would not surprise me either. Iran's conservative-dominated parliament has previously shown it is ready to take action against what it sees as hostility from the West.  In November a vote was passed to expel the British ambassador, and London had to withdraw all embassy staff when radical Iranians stormed the British embassy due to the new EU sanctions.

Things certainly might become difficult in Europe with the loss of Iranian oil. Let’s hope that OPEC supports us.

By. James Burgess of Oilprice.com



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  • Philip Andrews on January 28 2012 said:
    Well, it kind of depends on a few factors such as;

    1) Will Iran be able to make up its lost sales to the EU by increased sales to India and China? And paying in gold to the detriment of the dollar?
    2) Will EU importers try to import Iranian oil through 3rd parties? If this is at all possible?
    3)Will the alternative suppliers be increasing their 'costs' for increasing their supplies to the EU to replace Iranian oil? Will non Iranian oil become even dearer?
    4)Oil is still a sellers market. Saudi oil production is said to be gradually declinming. They may actually have difficulty sustaining the effort to make up the loss of the 20% market share that Iranian oil is said to represent.
    5) Depending on how long these sanctions last, or more importantly how long they remain effective, if the EU decides to return to Iran, will Iran want to return to the EU? If so will her terms be much more severe?
    6) In the longer term Iran weill have control over Iraq oil, said to be potentially almost as great a resource as Saudi. Once the West comes to its senses over Iran, will it (the West) have to pay a price for its present folly with Iran? Saudi in decline, Iraq as yet with huge untapped potential; is the West in danger of shooting itself in the foot?

    7) Longer term again, whatever happens in Syria Iran will likely retain an influence once all the hulabaloo has died away. Iran may then take a leaf out of the Syrian rebels book in its dealings with The Gulf States and Saudi Anbar. More oil problems on the horizon there.
    Is managing Israel's paranoia over Iran's nuclear worth all this? or is there some darker more hidden agaenda between Iran and the West?
    Something doesn't quite add up here...

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