A bill making the rounds in the US House of Representatives would impose severe sanctions against six major companies selling gasoline to Iran. The companies identified in the bill, sponsored by Mark Kirk of Illinois, include the Swiss firms Vitol and Glencore International, the Swiss and Dutch firm Trafigura, France's Total, BP and India's Reliance Industries.
The bill would also extend sanctions to companies that provide any goods, services or technology for building refineries in Iran.
Somebody will sell them gas. Still, every crisis is an opportunity.
The gasoline subsidy is hugely expensive for the government and only encourages inefficiency in consumption. The Iranian public has long resisted the necessary reforms but help is on the way for the Majlis: the US Congress is offering to make efficiency is gasoline use a matter of national pride and patriotism. This bill could be the impetus for important economic reforms. Who says the Americans never do anything for Iran?
More broadly, this is what happens when American politicians only know a few things about a country and are in love with themselves as "sharp operators." They really think they've identified a weak spot that will bring the whole of the Republic down. In fact, a combination of subsidy reform, new investment, and dealing with suppliers who have no US business connections will get them through this crisis without too much trouble.
But the US will nonetheless build on its reputation for being meddlesome and petty. Note the secondary nature of the sanctions: foreign firms are being targeted by the US government for doing business with Iran. Bad policy, badly executed, that will accomplish nothing but providing the hardliners with more evidence of US aggression and bad faith.
Very good points anonymous. I must say, its true, Iran MUST realize it needs to increase its domestic gasoline output, and then a vulnerability is patched-in addition to the others US has exploited through sanctions. Either way, this is bad news. For one, Obama's "Iran plan" will turn to ashes,just like his hopes for a nuke free world(are you kiddin me!!!!!!!), and Afghanistan will becoming much noticeably harder for NATO. THis is goign to get messy, and it might soon be showtime for Iran-Israel war, so this is so crazy. Talk is always cheap, and everyone must remember that, even when Obama is running his mouth off...
The war with Iraq ended more than twenty years ago. Iran has made lots of cash out of selling crude oil during these twenty years. Yet its refinery capacity remains dismal. Iran did not need gasoline embargo to start working on self sufficiency. Mismanagement of the economy and the oil industry in these long years is the root cause. The country remains vulnerable as long as this kind of mismanagement continues.
True Nader,i agree! Iran, just like other countries(including US) needs to get serious and stop being overcorrupt in strategic sectors like energy, but, as i said, this is not a unipolar world, so as US cranks up pressure on Iran, US should expect more pressure in other areas...its only fair, and these sanctions are too little too late. YOu think gas sanctions will stop all these years of secrecy and nuclear advancement? Iran's only option is to crash this program from here on, bcos you might as well just do it.
Thats Denis Ross and John the swinger Bolton that are having AIPAC push for these sanctions.
again AIPAC is going against US interests.
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