Iran and EU Oil Sanctions
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Iran and EU Oil Sanctions
Iran: EU oil sanctions 'unfair' and 'doomed to fail'
Comments (304)
Catherine Ashton: "There is no question that if Iran responds positively the sanctions can eventually be lifted"
Continue reading the main story
Iran
has said an oil embargo adopted by European Union foreign ministers
over the country's nuclear programme is "unfair" and "doomed to fail".
The measures would not prevent Iran's "progress for achieving
its basic rights", foreign ministry spokesman Ramin Mehmanparast said.
The sanctions ban all new oil contracts with Iran and freeze the assets of Iran's central bank in the EU.
The EU currently buys about 20% of Iran's oil exports.
"European officials and other countries which are under
America's political pressure... should consider their national interests
and not deprive themselves of Iran's oil to help US officials achieve
their secret aims," Mr Mehmanparast added.
He accused the US of trying to create "problems with energy
supply requirements in countries which are America's economic rivals".
US President Barack Obama has welcomed the EU sanctions,
saying they show international unity against the "serious threat" posed
by Iran's nuclear programme.
Warships on the move
Continue reading the main story Analysis
Jonathan Marcus
BBC Diplomatic Correspondent
So once the new measures are in place, how successful will they be? Even Western diplomats are uncertain.
There is no doubting that the Iranian economy will suffer.
But the nuclear programme is a matter of national pride and ultimately
national security.
Iran has seen the demise of regimes in Iraq and Libya and
noted the survival of that in North Korea - the one so-called "rogue
state" that has nuclear weapons.
Iran's rulers may well believe that having at least the
potential for a nuclear bomb is something that could secure the country
against outside threat.
Seen in this light one can imagine the Iranian authorities
being willing to absorb considerable economic pain to pursue their
nuclear research effort.
The sanctions were formally adopted at a meeting of EU foreign ministers in Brussels on Monday.
Iran had "failed to restore international confidence in the
exclusively peaceful nature of its nuclear programme", British Prime
Minister David Cameron, French President Nicolas Sarkozy and German
Chancellor Angela Merkel said in a joint statement.
"We will not accept Iran acquiring a nuclear weapon. Iran has
so far had no regard for its international obligations and is already
exporting and threatening violence around its region," the leaders
added.
The measures were "another strong step in the international
effort to dramatically increase the pressure on Iran", US Treasury
Secretary Timothy Geithner and Secretary of State Hillary Clinton said
in a statement.
Meanwhile, the International Atomic Energy Agency, the UN's
nuclear watchdog has confirmed it is sending a team to Iran between 29
and 31 January "to resolve all outstanding substantive issues".
Last November the IAEA said in a report that it had
information suggesting Iran had carried out tests "relevant to the
development of a nuclear explosive device".
Tehran insists its nuclear programme is for energy purposes.
Earlier on Monday, the Pentagon said the US aircraft carrier
USS Abraham Lincoln, as well as a British Royal Navy frigate and a
French warship, had passed through the Strait of Hormuz at the entrance
to the Gulf without incident, following Iranian threats to block the
trade route.
Russian opposition
The EU said the sanctions prohibit the import, purchase and
transport of Iranian crude oil and petroleum products as well as related
finance and insurance. All existing contracts will have to be phased
out by 1 July.
Investment as well as the export of key equipment and technology for Iran's petrochemical sector is also banned.
BBC Europe Editor Gavin Hewitt says it is one of the toughest steps the EU has ever taken.
EU foreign policy chief Catherine Ashton said the purpose of
the sanctions was "to put pressure on Iran to come back to the
negotiating table".
Earlier, UK Foreign Secretary William Hague said the embargo showed "the resolve of the European Union on this issue".
"It is absolutely right to do this when Iran is continuing to breach United Nations resolutions," he added.
The BBC's James Reynolds visits Dubai where many people export goods to Iran
But the Russian foreign ministry said it was a "deeply
mistaken" move that would not encourage Iran to return to the
negotiating table.
"It's apparent that in this case there is open pressure and diktat, aimed at "punishing" Iran," it said in a statement.
BBC Iran correspondent James Reynolds says the decision may damage the Iranian economy - but in itself it won't destroy it.
Iran sells most of its oil to countries in Asia. The EU and
the United States are now working to persuade Asian countries to reduce
their purchases from Iran as well.
Iran has already threatened to retaliate by blocking the
Strait of Hormuz at the entrance to the Gulf, through which 20% of the
world's oil exports pass.
The US has said it will keep the trade route open, raising the possibility of a confrontation.
Late last year Iran conducted 10 days of military exercises near the Strait of Hormuz, test-firing several missiles.
Oil prices have risen already because of the increasing tension and the expected impact of an EU ban on oil supplies to Europe.
A French warship also accompanied US and UK naval vessels through the Strait of Hormuz on Monday
Comments (304)
Catherine Ashton: "There is no question that if Iran responds positively the sanctions can eventually be lifted"
Continue reading the main story
Iran
has said an oil embargo adopted by European Union foreign ministers
over the country's nuclear programme is "unfair" and "doomed to fail".
The measures would not prevent Iran's "progress for achieving
its basic rights", foreign ministry spokesman Ramin Mehmanparast said.
The sanctions ban all new oil contracts with Iran and freeze the assets of Iran's central bank in the EU.
The EU currently buys about 20% of Iran's oil exports.
"European officials and other countries which are under
America's political pressure... should consider their national interests
and not deprive themselves of Iran's oil to help US officials achieve
their secret aims," Mr Mehmanparast added.
He accused the US of trying to create "problems with energy
supply requirements in countries which are America's economic rivals".
US President Barack Obama has welcomed the EU sanctions,
saying they show international unity against the "serious threat" posed
by Iran's nuclear programme.
Warships on the move
Continue reading the main story Analysis
Jonathan Marcus
BBC Diplomatic Correspondent
So once the new measures are in place, how successful will they be? Even Western diplomats are uncertain.
There is no doubting that the Iranian economy will suffer.
But the nuclear programme is a matter of national pride and ultimately
national security.
Iran has seen the demise of regimes in Iraq and Libya and
noted the survival of that in North Korea - the one so-called "rogue
state" that has nuclear weapons.
Iran's rulers may well believe that having at least the
potential for a nuclear bomb is something that could secure the country
against outside threat.
Seen in this light one can imagine the Iranian authorities
being willing to absorb considerable economic pain to pursue their
nuclear research effort.
The sanctions were formally adopted at a meeting of EU foreign ministers in Brussels on Monday.
Iran had "failed to restore international confidence in the
exclusively peaceful nature of its nuclear programme", British Prime
Minister David Cameron, French President Nicolas Sarkozy and German
Chancellor Angela Merkel said in a joint statement.
"We will not accept Iran acquiring a nuclear weapon. Iran has
so far had no regard for its international obligations and is already
exporting and threatening violence around its region," the leaders
added.
The measures were "another strong step in the international
effort to dramatically increase the pressure on Iran", US Treasury
Secretary Timothy Geithner and Secretary of State Hillary Clinton said
in a statement.
Meanwhile, the International Atomic Energy Agency, the UN's
nuclear watchdog has confirmed it is sending a team to Iran between 29
and 31 January "to resolve all outstanding substantive issues".
Last November the IAEA said in a report that it had
information suggesting Iran had carried out tests "relevant to the
development of a nuclear explosive device".
Tehran insists its nuclear programme is for energy purposes.
Earlier on Monday, the Pentagon said the US aircraft carrier
USS Abraham Lincoln, as well as a British Royal Navy frigate and a
French warship, had passed through the Strait of Hormuz at the entrance
to the Gulf without incident, following Iranian threats to block the
trade route.
Russian opposition
The EU said the sanctions prohibit the import, purchase and
transport of Iranian crude oil and petroleum products as well as related
finance and insurance. All existing contracts will have to be phased
out by 1 July.
Investment as well as the export of key equipment and technology for Iran's petrochemical sector is also banned.
BBC Europe Editor Gavin Hewitt says it is one of the toughest steps the EU has ever taken.
EU foreign policy chief Catherine Ashton said the purpose of
the sanctions was "to put pressure on Iran to come back to the
negotiating table".
Earlier, UK Foreign Secretary William Hague said the embargo showed "the resolve of the European Union on this issue".
"It is absolutely right to do this when Iran is continuing to breach United Nations resolutions," he added.
The BBC's James Reynolds visits Dubai where many people export goods to Iran
But the Russian foreign ministry said it was a "deeply
mistaken" move that would not encourage Iran to return to the
negotiating table.
"It's apparent that in this case there is open pressure and diktat, aimed at "punishing" Iran," it said in a statement.
BBC Iran correspondent James Reynolds says the decision may damage the Iranian economy - but in itself it won't destroy it.
Iran sells most of its oil to countries in Asia. The EU and
the United States are now working to persuade Asian countries to reduce
their purchases from Iran as well.
Iran has already threatened to retaliate by blocking the
Strait of Hormuz at the entrance to the Gulf, through which 20% of the
world's oil exports pass.
The US has said it will keep the trade route open, raising the possibility of a confrontation.
Late last year Iran conducted 10 days of military exercises near the Strait of Hormuz, test-firing several missiles.
Oil prices have risen already because of the increasing tension and the expected impact of an EU ban on oil supplies to Europe.
A French warship also accompanied US and UK naval vessels through the Strait of Hormuz on Monday
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Re: Iran and EU Oil Sanctions
Let"s hope Iran backs down . there was talk of Saudi Arabia agreeing to a tip of their Land being demolished to make way for a channel
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
Panda- Platinum Poster
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Re: Iran and EU Oil Sanctions
Panda wrote:Let"s hope Iran backs down . there was talk of Saudi Arabia agreeing to a tip of their Land being demolished to make way for a channel
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
Unfortunately, I think that Nobel Peace Prize winner, Obama, is set on invading Iran.
Re: Iran and EU Oil Sanctions
AnnaEsse wrote:Panda wrote:Let"s hope Iran backs down . there was talk of Saudi Arabia agreeing to a tip of their Land being demolished to make way for a channel
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
Unfortunately, I think that Nobel Peace Prize winner, Obama, is set on invading Iran.
Set AnnaEsee I agree, if this is a cynical attempt to increase his standing with the Voters , it"s disgraceful . There are already U.S. Carriers in the Area
and spy planes flying around. Iran has gained sympathy from some of the South American States and although this is supposed to frighten Iran...will it?
Panda- Platinum Poster
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Number of posts : 30555
Age : 67
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Re: Iran and EU Oil Sanctions
Panda wrote:AnnaEsse wrote:Panda wrote:Let"s hope Iran backs down . there was talk of Saudi Arabia agreeing to a tip of their Land being demolished to make way for a channel
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
Unfortunately, I think that Nobel Peace Prize winner, Obama, is set on invading Iran.
Set AnnaEsee I agree, if this is a cynical attempt to increase his standing with the Voters , it"s disgraceful . There are already U.S. Carriers in the Area
and spy planes flying around. Iran has gained sympathy from some of the South American States and although this is supposed to frighten Iran...will it?
I think there may be a 'false flag,' incident that will justify the US attacking Iran.
Re: Iran and EU Oil Sanctions
AnnaEsse wrote:Panda wrote:AnnaEsse wrote:Panda wrote:Let"s hope Iran backs down . there was talk of Saudi Arabia agreeing to a tip of their Land being demolished to make way for a channel
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
Unfortunately, I think that Nobel Peace Prize winner, Obama, is set on invading Iran.
Set AnnaEsee I agree, if this is a cynical attempt to increase his standing with the Voters , it"s disgraceful . There are already U.S. Carriers in the Area
and spy planes flying around. Iran has gained sympathy from some of the South American States and although this is supposed to frighten Iran...will it?
I think there may be a 'false flag,' incident that will justify the US attacking Iran.
Well let"s hope Britain doesn"t join in, Since the EU has also joined in by issuing and Embargo to commence 1st July , let them send Troops.!!! for all the
integration of the 27 states I cannot believe they do not have an EU Defence Force.
Panda- Platinum Poster
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Number of posts : 30555
Age : 67
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Re: Iran and EU Oil Sanctions
Panda wrote:AnnaEsse wrote:Panda wrote:AnnaEsse wrote:Panda wrote:Let"s hope Iran backs down . there was talk of Saudi Arabia agreeing to a tip of their Land being demolished to make way for a channel
for ships to pass through thus avoiding the strait of Homuz. Why couldn2t this be done now so these confrontations can cease. The last
thing we want is another Middle East War.!!
Unfortunately, I think that Nobel Peace Prize winner, Obama, is set on invading Iran.
Set AnnaEsee I agree, if this is a cynical attempt to increase his standing with the Voters , it"s disgraceful . There are already U.S. Carriers in the Area
and spy planes flying around. Iran has gained sympathy from some of the South American States and although this is supposed to frighten Iran...will it?
I think there may be a 'false flag,' incident that will justify the US attacking Iran.
Well let"s hope Britain doesn"t join in, Since the EU has also joined in by issuing and Embargo to commence 1st July , let them send Troops.!!! for all the
integration of the 27 states I cannot believe they do not have an EU Defence Force.
I think if the US attacks Iran our government will take us in too.
Re: Iran and EU Oil Sanctions
Well AnnaEsse What if Iran retaliates and uses Nuclear weapons to drop on America......can you imagine it?????
Panda- Platinum Poster
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Re: Iran and EU Oil Sanctions
Panda wrote:Well AnnaEsse What if Iran retaliates and uses Nuclear weapons to drop on America......can you imagine it?????
It's almost beyond imagination, but if Iran doesn't have its nukes ready, one of its allies will possibly come in and do the job!
Re: Iran and EU Oil Sanctions
AnnaEsse wrote:Panda wrote:Well AnnaEsse What if Iran retaliates and uses Nuclear weapons to drop on America......can you imagine it?????
It's almost beyond imagination, but if Iran doesn't have its nukes ready, one of its allies will possibly come in and do the job!
Iran has the support of some S.American Countries saying if other Countries can have nuclear weapons, why can"t Iran.? If the U>S> or U.K> come up with another 4 minute warning .....expect an invasion.
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Re: Iran and EU Oil Sanctions
25 January 2012
Last updated at 16:46
IMF warns over risk of Iran oil price shock
Iran has threatened to blockade the Straits of Hormuz, through which 40% of all oil exports pass
Continue reading the main story Related Stories
The International Monetary Fund (IMF) has warned of a 20-30% oil price spike if Iranian exports are disrupted.
The IMF warned that if the West imposed financial sanctions
on Iran, it would be tantamount to an oil blockade, and the shock to the
market could be as bad as from Libya's revolution last year.
Iran produces 5% of global oil output.
Moreover, if Iran goes ahead with a threat to blockade oil
exports via the Straits of Hormuz in the Gulf, the IMF said the shock
could be even greater.
About a quarter of all oil produced globally, and some 40% of
all oil exports - including those from Iraq, Kuwait and Saudi Arabia -
are shipped through the Straits each year.
"A blockade of the Strait of Hormuz would constitute, and be
perceived by markets to presage, sharply heightened global geopolitical
tension involving a much larger and unprecedented disruption," the Fund
said in a regular note to the Group of 20 leading industrialised countries.
The market is already pricing in a small risk of an
escalation of tensions between Iran on the one hand, and the US, Europe
and Israel on the other, according to the IMF's estimates.
Western countries have been threatening sanctions if Iran
does not halt its nuclear programme, which they maintain is being used
to develop weapons.
The fund warned that the impact on oil prices of either scenario would be accentuated by the current tightness of oil supplies.
The oil stockpiles of major oil consuming countries are lower
than usual, while the big oil exporting countries have limited
short-term ability to increase supply, the IMF said.
Iran is the world's fifth-largest oil producer, extracting
3.5 million barrels a day. Other members of the Organisation of
Petroleum Exporting Countries (Opec) have some 3.8 million barrels in
spare capacity that could eventually be made available.
However, in the case of an oil blockade by Iran, access to
oil supplies from other major Opec countries - including crucially Saudi
Arabia - would also be cut off.
More on This Story
Related Stories
From other news sites
Last updated at 16:46
IMF warns over risk of Iran oil price shock
Iran has threatened to blockade the Straits of Hormuz, through which 40% of all oil exports pass
Continue reading the main story Related Stories
The International Monetary Fund (IMF) has warned of a 20-30% oil price spike if Iranian exports are disrupted.
The IMF warned that if the West imposed financial sanctions
on Iran, it would be tantamount to an oil blockade, and the shock to the
market could be as bad as from Libya's revolution last year.
Iran produces 5% of global oil output.
Moreover, if Iran goes ahead with a threat to blockade oil
exports via the Straits of Hormuz in the Gulf, the IMF said the shock
could be even greater.
About a quarter of all oil produced globally, and some 40% of
all oil exports - including those from Iraq, Kuwait and Saudi Arabia -
are shipped through the Straits each year.
"A blockade of the Strait of Hormuz would constitute, and be
perceived by markets to presage, sharply heightened global geopolitical
tension involving a much larger and unprecedented disruption," the Fund
said in a regular note to the Group of 20 leading industrialised countries.
The market is already pricing in a small risk of an
escalation of tensions between Iran on the one hand, and the US, Europe
and Israel on the other, according to the IMF's estimates.
Western countries have been threatening sanctions if Iran
does not halt its nuclear programme, which they maintain is being used
to develop weapons.
The fund warned that the impact on oil prices of either scenario would be accentuated by the current tightness of oil supplies.
The oil stockpiles of major oil consuming countries are lower
than usual, while the big oil exporting countries have limited
short-term ability to increase supply, the IMF said.
Iran is the world's fifth-largest oil producer, extracting
3.5 million barrels a day. Other members of the Organisation of
Petroleum Exporting Countries (Opec) have some 3.8 million barrels in
spare capacity that could eventually be made available.
However, in the case of an oil blockade by Iran, access to
oil supplies from other major Opec countries - including crucially Saudi
Arabia - would also be cut off.
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From other news sites
Reuters UK Halt in Iran oil could push crude up 30 percent - IMF 13 mins ago
London Stock Exchange IMF To G-20: Iran Oil Export Disruption Would Push Prices Up $20-$30/Bbl 33 mins ago
Japan Times Asian quest for energy security 45 mins ago
Yahoo! UK and Ireland UPDATE 1-IMF: halt in Iran oil could push crude up 30 pct 49 mins ago
Mail Online UK This is no time for Western sabre-rattling in the Gulf, the stakes are simply too high... 38 hrs ago
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Re: Iran and EU Oil Sanctions
Ahmadinejad Says Iran Is Ready for Nuclear Talks
By J. DAVID GOODMAN
Published: January 26, 2012
President Mahmoud Ahmadinejad on Thursday became the latest and most senior member of the Iranian government to publicly declare his readiness for nuclear talks amid tough new economic sanctions adopted by the United States and Europe in recent weeks.
Enlarge This Image
Rodrigo Buendia/Agence France-Presse — Getty Images
President Mahmoud Ahmadinejad spoke to reporters during a visit to Quito earlier this month.
Mr. Ahmadinejad told students in the southern city of Kerman that he is ready for new talks, The Associated Press reported. But he added that the new sanctions, which target its oil industry, would not force Iran to give in to demands by the Western powers to end its nuclear enrichment program, The A.P. said.
The remarks come ahead of a visit by United Nations nuclear inspectors to Iran next week and a March 2 parliamentary elections in Iran, where the economy has sputtered under the weight of sanctions and high inflation. With the country’s currency at record lows, Mr. Ahmadinejad on Wednesday abruptly reversed himself and allowed interest rates to rise in an attempt to ease inflationary pressure. The move was seen as a rare tacit admission of the effect the sanctions have had in Iran.
While Thursday’s comments on negotiations were the first by the Iranian president, they did not appear to bring Iran closer to resuming negotiations with Europe and the United States. The previous round of negotiations over the Iranian nuclear program broke down over a year ago after Iran presented conditions considered unacceptable to the West.
European leaders are waiting for Iran to respond to an October letter seeking a resumption of talks without preconditions if Iran agreed to discuss its nuclear enrichment program. During the last talks, Iran refused to discuss that main issue, seeking instead the removal of sanctions and the recognition of a “right” to enrich uranium before negotiating could begin.
Some Western diplomats have viewed Iran’s latest public offers of negotiations as an effort to buy time, allowing the country to enrich more uranium as talks get under way. Mr. Ahmadinejad’s statements on Thursday did not appear to coincide with any official diplomatic response, European officials said on Thursday. Earlier this month, the Iranian foreign minister, Ali Akbar Salehi, said that his country was ready to resume negotiations. During a visit to Turkey, he said negotiations were under way about the site and date, Iran’s official Islamic Republic News Agency reported, and that the talks “will most probably be held in Istanbul.”
Steven Erlanger contributed reporting from Paris.
By J. DAVID GOODMAN
Published: January 26, 2012
President Mahmoud Ahmadinejad on Thursday became the latest and most senior member of the Iranian government to publicly declare his readiness for nuclear talks amid tough new economic sanctions adopted by the United States and Europe in recent weeks.
Enlarge This Image
Rodrigo Buendia/Agence France-Presse — Getty Images
President Mahmoud Ahmadinejad spoke to reporters during a visit to Quito earlier this month.
Mr. Ahmadinejad told students in the southern city of Kerman that he is ready for new talks, The Associated Press reported. But he added that the new sanctions, which target its oil industry, would not force Iran to give in to demands by the Western powers to end its nuclear enrichment program, The A.P. said.
The remarks come ahead of a visit by United Nations nuclear inspectors to Iran next week and a March 2 parliamentary elections in Iran, where the economy has sputtered under the weight of sanctions and high inflation. With the country’s currency at record lows, Mr. Ahmadinejad on Wednesday abruptly reversed himself and allowed interest rates to rise in an attempt to ease inflationary pressure. The move was seen as a rare tacit admission of the effect the sanctions have had in Iran.
While Thursday’s comments on negotiations were the first by the Iranian president, they did not appear to bring Iran closer to resuming negotiations with Europe and the United States. The previous round of negotiations over the Iranian nuclear program broke down over a year ago after Iran presented conditions considered unacceptable to the West.
European leaders are waiting for Iran to respond to an October letter seeking a resumption of talks without preconditions if Iran agreed to discuss its nuclear enrichment program. During the last talks, Iran refused to discuss that main issue, seeking instead the removal of sanctions and the recognition of a “right” to enrich uranium before negotiating could begin.
Some Western diplomats have viewed Iran’s latest public offers of negotiations as an effort to buy time, allowing the country to enrich more uranium as talks get under way. Mr. Ahmadinejad’s statements on Thursday did not appear to coincide with any official diplomatic response, European officials said on Thursday. Earlier this month, the Iranian foreign minister, Ali Akbar Salehi, said that his country was ready to resume negotiations. During a visit to Turkey, he said negotiations were under way about the site and date, Iran’s official Islamic Republic News Agency reported, and that the talks “will most probably be held in Istanbul.”
Steven Erlanger contributed reporting from Paris.
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