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Can a European Ban on Iranian Oil Force Tehran to Fold Its Nuclear Program?

RDS

RDS

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Oil will always be in demand. There are others waiting to fill the vacuum. OPEC cuts its production and when oil price rises Iran will make up even more revenue and that applies to all oil producing countries.

Even if all that were to go well, other perils exist. First, the ban could find many or most European nations having to pay considerably more to new oil suppliers—an expense that could speed up and deepen the slide of E.U. economies into recession. Then there’s the nightmare scenario of Iran making good on recent threats to retaliate by closing the Straight of Hormuz—the waterway through which 20% of the world’s oil passes. In the wake of those menaces, media reports have quoted industry experts estimating oil prices could rapidly shoot to nearly twice their current levels in the event of a military blockade of the strait. Evidence suggests that could indeed happen: the mere the news of the informal EU agreement on an Iranian oil ban sent Brent crude up $2 to $114 per barrel Wednesday as traders ponders its possible consequences.

Read more: EU Move Joins US To Force Iran To Bend On Nukes | Global Spin | TIME.com
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