News / Europe

EU Oil Embargo on Iran Goes into Effect Sunday

EU Oil Embargo on Iran Goes Into Effect Sundayi
|| 0:00:00
X
Al Pessin
June 28, 2012 3:23 PM
European Union sanctions on Iran’s oil industry go into full effect on Sunday, adding to the pressure on Iranian leaders to negotiate a settlement of the international concerns about their nuclear program.
Al Pessin
LONDON -- European Union sanctions on Iran’s oil industry go into full effect on Sunday, adding to the pressure on Iranian leaders to negotiate a settlement of the international concerns about their nuclear program.  

The world runs on oil, much of it transported on ships from countries in the Middle East, including Iran. But the European Union has all but stopped its imports from Iran, and the flow will stop completely by Sunday.

The move was expected to be costly, resulting in an increase in the price of oil. Instead, the price has dropped by 20 percent since April.

"What has happened is that Libyan production is coming back, Saudi production has been increased, Nigerian production went up and Iraq has also increased output.  And the net increase has been half a million barrels a day," said Leo Drollas of London’s Center for Global Energy Studies.

No need for Iran's oil

Drollas says the world has so much oil that it doesn’t need Iran’s output.  And Iran’s rival Saudi Arabia appears eager to keep it that way.

That is bad news for Iran, where international sanctions have caused a 20 percent inflation rate, with food prices rising more than twice that fast.

Now, the situation will only get worse, according to Iran expert Mark Fitzpatrick at London’s International Institute for Strategic Studies.

"More sanctions will be imposed on the Iranian economy, not just the ones that have already been agreed, that fall due on July 1st, but more on top of that. It won’t be a pleasant place to live, in Iran, in the months to come," he said.

Fitzpatrick believes the sanctions will get worse because negotiations to curb Iran’s nuclear fuel enrichment program appear to be in trouble.  Recent talks in Moscow produced no move toward compromise.  Iran says its program is for peaceful uses but foreign experts say it could easily lead to the production of a nuclear bomb.

Resilient economy

Still, Fitzpatrick says Iran’s economy is strong enough to withstand the pressure of sanctions at least for a little longer.

"It won’t fall to its knees immediately," he said. "But the pressure on the Iranian consumers, is only going to get worse.  And what for? What is the purpose of all this pain? So that Iran can have an enrichment program to produce a nuclear weapon in the future, that if they ever took that step the United States will go to war against Iran? It doesn’t make any sense.”

Fitzpatrick does not expect military action as long as negotiations continue. But later this year, if talks fail, he says Israel could attack Iran’s nuclear facilities, and that could trigger a wider war.

You May Like

Video Experts Warn World Losing Ebola Fight

Doctors Without Borders says world is losing battle against Ebola, unless wealthy nations dispatch specialized biological disaster response teams More

Video Experts: Rise of Islamic State Significant Development in Jihadism

Many analysts contend the group - which grew out of al-Qaida in Iraq - has been rebuilding for years More

US-Based Hong Kongers Pledge Support for Pro-Democracy Activists

Democracy advocates call on Chinese living abroad to join them in opposing new election rules for their home territory More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Larger Than Life Chinese Lanterns Make Southern California Appearancei
X
Elizabeth Lee
September 02, 2014 8:57 PM
Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Larger Than Life Chinese Lanterns Make Southern California Appearance

Chinese lanterns with a long history are lighting up in 21st century style at the Los Angeles County Fair in southern California. Visitors can see traditional lanterns that hang, but also lanterns in the shape of animals, iconic landmarks and many other objects, all created by artisans from a place in China known for its lanterns. Elizabeth Lee has the details from the fair in the city of Pomona.
Video

Video Experts See Rise of ISIS as Significant Development

The Islamic State’s rise seems sudden. It caught the U.S. by surprise this summer when it captured large portions of northern Iraq and spread its wings in neighboring Syria. But many analysts contend that the group - which grew out of al-Qaida in Iraq - has been rebuilding for years. VOA's Jela de Franceschi takes a closer look at the rise of ISIS and its implications for the Middle East and beyond.
Video

Video Israel Concerned Over Syrian Rebels in Golan

Israeli officials are following with concern the recent fighting between Syrian rebels and government forces near the contested Golan Heights. Forty-four U.N. peacekeepers from Fiji have been seized by Syrian Islamist rebels and the clashes occasionally have spilled into Israel. VOA’s Scott Bobb reports from Jerusalem.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.

AppleAndroid