Exclusive - In major blow, EU agrees embargo on Iranian crude

[dipsydoodle]

(Reuters) - European governments have agreed in principle to ban imports of Iranian oil, EU diplomats said Wednesday, dealing a potentially heavy blow to Tehran that crowns new Western economic sanctions imposing real pain just months before an Iranian election.

The prospective embargo from the European Union, along with tough U.S. financial measures signed into law by President Barack Obama on New Year's Eve, form a concerted Western campaign to impose sanctions over Iran's nuclear program.

Iran says its nuclear program is strictly peaceful, but Western countries say a November U.N. report shows it has sought to build an atomic bomb. Talks between Tehran and major powers broke down a year ago.

Diplomats said EU envoys had held talks on Iran in the last days of December, and that any objections to an oil embargo had been dropped - notably from crisis-hit Greece which gets a third of its oil from Iran, relying on Tehran's lenient financing. Spain and Italy are also big buyers.

http://uk.reuters.com/article/2012/01/04/uk-iran-eu-sanctions-idUKTRE80315Q20120104

[bananas]

1. Good. nt

[bananas]

2. Several US states are divesting to pressure Iran

http://www.democraticunderground.com/11273136

[pampango]

3. EuroNews: EU ready to ban Iranian oil imports

The 27 members of the European Union may be on the brink of announcing an embargo on Iranian oil.

The deal could be reached as early as the end of this month as it appears there is already agreement in principle, with just the dates remaining to be fixed.

Several EU nations, notably Greece, are heavily dependent on Iranian oil so an embargo will hurt, and they have been pushing for an embargo to start later in the year, but it seems they have been swayed by a majority wanting swifter action.

China has however reiterated its opposition to unilateral action and stresses diplomacy is the way forward. “China is against one country putting their domestic laws above international law and placing unilateral sanctions on another country. China, like many other countries, maintains regular, open and transparent economic and energy relations with Iran. These relations do not violate the regulations of the UN Security Council,” said foreign ministry spokesman Hong Lei.

http://www.euronews.net/2012/01/04/eu-ready-to-ban-iranian-oil-imports/

The OP link indicates that China, "driving a hard bargain, has cut its order of Iranian oil by more than half this month."

"Most traders expect Iran will still find buyers for its crude, mostly in Asia, but it is going to have to offer substantial discounts, cutting back the revenue that the state relies on to subsidise basic goods for its citizens.

Tougher sanctions appear to be having an impact already on Iran's streets, where prices for foodstuffs are soaring. The rial currency has lost 40 percent of its value against the dollar over the past month.""

Will be interesting to see if and how much revenue Iran loses either through a lower volume of oil exports or lower prices after discounts.

[dipsydoodle]

4. Reference to discounts is almost farcical

Presumably it means they'll sell at a price / barrel that most here would like it to be anyway. Aside from the that the price of oil is increasing as result of this and the price they sell for may sinply reflect what the price would've stayed at had this not occured.

Oil hit an 8 month high today as a result of this.

[pampango]

5. You're probably right. Western politicians get to look tough for their voting publics without doing

any real damage to Iran. Iran probably will suffer little financially other than increased shipping costs to send its oil further for delivery.

It will be interesting to see how tough China plays with price.

[ronnie624]

6. "...a November U.N. report shows it has sought to build an atomic bomb."

That sounds a bit hyperbolic. According to the UN report, Iran was in possession of computer modelling software and information from other such theoretical research. I wonder if research is forbidden by the NPT.

[joshcryer]

7. Yikes. I don't like this.

[sabrina 1]

8. Stupid, from the usual suspects who have destroyed their own countries economies.

Warmongers need to go. This whole thing is so transparent now no one, believes them anymore.

The EU is practically on the brink of collapse because of corruption and stupidity in their failed attempts to cover the Banksters' crime and make the people pay their debts.

They ought not to be trying to instigate WW111 to cover up their own criminal failures.

Iran won't have a problem selling their oil. But we will probably end up paying more for ours.

The world is being run by people who are not fit to be in the positions they are in. All anyone has to do is look around the world, under their 'leadershop'. But killing they are good at.

[Rosa Luxemburg]

9. the Chinese will probably buy it

[lovuian]

10. Yep

there is a new buyer now