News / Europe

    Europe Debates Iran Oil Sanctions Amid Debt Crisis

    Iran's President Mahmoud Ahmadinejad (L) stands with former Cuban leader Fidel Castro, in Cuba, January 12, 2012.
    Iran's President Mahmoud Ahmadinejad (L) stands with former Cuban leader Fidel Castro, in Cuba, January 12, 2012.
    Henry Ridgwell

    Europe is gearing up for a summit later this month on a new set of sanctions against Iran's oil industry, following a similar move by the United States. Analysts say the EU members who are the worst-hit from the euro debt crisis stand to lose the most from any sanctions.

    With sanctions tightening, Iran’s leader toured South America, including a stop in Cuba Wednesday. President Mahmoud Ahmadinejad is looking for new friends and new markets.

    The U.S. has already imposed sanctions on oil companies trading with Iran, in response to Tehran's nuclear enrichment program. Now it's Europe's turn. The EU will meet on January 23 to agree on its own embargo.

    Professor Paul Stevens of the London-based analyst group Chatham House, said agreement won't be easy. Europe's most indebted countries are also Iran's main customers.

    “Particularly Greece, for example, is dependent for about a third of its oil imports on Iran, on very favorable financial terms and given the situation in Greece, they would not give that up lightly. Also, Italy, for example, is owed quite a lot of money, or the Italian company ENI is owed quite a lot of money by the Iranian government, which is being repaid in oil,” said Stevens.

    Stevens said Japan, China and India all buy between four-hundred to five-hundred thousand barrels of Iranian oil a day. U.S. Treasury Secretary Timothy Geithner has been touring Asia trying to persuade them to cut back.

    But many Europeans remain unconvinced that sanctions will stop Iran from pursuing what the West believes is a nuclear weapons program - a charge Tehran denies. British political commentator Simon Jenkins predicts there will be a backlash and the Iranian opposition will suffer.

    “It’ll make the Iranian regime be very tough with anybody who seems to be liberal-minded, pluralistic, open to outside influences, particularly open to Western influences. Everything to do with sanctions will make the situation within Iran worse not better. It [sanctions] certainly has never toppled a regime,” said Jenkins.

    Iran is flexing its military muscle - staging recent exercises in the Gulf. Iran has threatened to close the Strait of Hormuz in the Gulf - through which a fifth of the world's oil passes each day. Energy analyst Paul Stevens said that would lead oil prices to skyrocket and spark a global financial crisis.

    “Closing the Strait of Hormuz or attempting to close it is Iran’s trump card. It is a major deterrent against the U.S. or Israel attacking Iran over this nuclear issue. I find it very unlikely, therefore, that they’re going to play that trump card over something like a new oil embargo,” said Stevens.

    Still, the U.S. and Europe aren't taking any chances. Britain's most advanced warship - the HMS Daring - has set sail on its maiden voyage to the region. The British Ministry of Defense says it's a routine deployment - but insists the ship's crew is prepared for any scenario. Meanwhile, the U.S. reportedly has sent a message to Tehran saying it will not tolerate any attempts to block the Strait of Hormuz.

    Join the conversation on our social journalism site - Middle East Voices. Follow our Middle East reports on Twitter and discuss them on our Facebook page.

    You May Like

    Russian-speaking Muslim Exiles Fear Possible Russia-Turkey Thaw

    Exiled from Russia as Islamic radicals and extremists, thousands found asylum in Turkey

    US Presidential Election Ends at Conventions for Territorial Citizens

    Citizens of US territories like Guam or Puerto Rico enjoy participation in US political process but are denied right to vote for president

    UN Syria Envoy: 'Devil Is in the Details' of Russian Aleppo Proposal

    UN uncertain about the possible humanitarian impact of Russian proposal to establish escape corridors in Aleppo

    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.
    Uganda Unveils its First Solar-powered Busi
    X
    July 28, 2016 4:16 AM
    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Philadelphia Uses DNC Spotlight to Profile Historic Role in Founding of United States

    The slogan of the Democratic National Convention now underway in Philadelphia is “Let’s Make History Again” which recognizes the role the city played in the foundation of the United States in the 18th century. As VOA’s Kane Farabaugh reports, local institutions are opening their doors in an effort to capitalize on the convention spotlight to draw visitors, and to offer more than just a history lesson.
    Video

    Video A Life of Fighting Back: Hillary Clinton Shatters Glass Ceiling

    Hillary Clinton made history Thursday, overcoming personal and political setbacks to become the first woman to win the presidential nomination of a major U.S. political party. If she wins in November, she will go from “first lady” to U.S. Senator from New York, to Secretary of State, to “Madam President.” Polls show Clinton is both beloved and despised. White House Correspondent Cindy Saine takes a look at the life of the woman both supporters and detractors agree is a fighter for the ages.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video First Time Delegate’s First Day Frustrations

    With thousands of people filling the streets of Philadelphia, Pennsylvania for the 2016 Democratic National Convention, VOA’s Kane Farabaugh narrowed in on one delegate as she made her first trip to a national party convention. It was a day that was anything but routine for this United States military veteran.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.

    Special Report

    Adrift The Invisible African Diaspora