Monday, January 23, 2012 - 9:41 AM
The European Union agrees on Iranian oil embargo
The European Union has agreed to a ban on Iranian oil imports as part of increased sanctions over its nuclear development program. EU Foreign Policy Chief Catherine Ashton said, "I want the pressure of these sanctions to result in negotiations." The foreign ministers agreed on a ban on any new contracts for Iranian crude oil or petroleum products, and for all existing contrast to end by July 1. The timeline was decided so the member countries with the most fragile economies, particularly Greece, Italy, and Spain, can find alternative sources of oil. The European Union is the second largest importer of Iranian oil after China, purchasing about 20 percent of its exports. Senior Iranian politician, Ali Fallahian, responded that Iran should end exports prior to the July 1 deadline, "so that the price of oil soars and the Europeans...have trouble." The European measures are expected to also include sanctions on Iran's central bank, falling in line with recent U.S. sanctions imposed on New Year's Eve. According to a European diplomat, "We want them to think ‘This is really getting very, very serious now.'" Iran has threatened to close the Strait of Hormuz, a vital waterway through which 20 percent of the world's oil passes.
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Daily Snapshot
CAIRO, EGYPT - A general view for the first Egyptian parliament session after the revolution that ousted former President Hosni Mubarak, January 23, 2012 in Cairo, Egypt. The session, chaired by Mahmoud el-Saqqahm, comes as the trial of the former President continues with prosecutors seeking a death penalty. The session is due to elect a speaker and two deputies (Asmma Waguih - Pool/Getty Images).
Arguments & Analysis
Saudi women break a barrier -- the right to sell lingerie (Thomas W. Lippman, New York Times)
"Over the coming generation, this is likely to be the farthest-reaching transformation in Saudi society. While women are still constrained by law, religion and custom, more and more are likely to enter the work force. They will be better educated than their predecessors, will marry later and will have fewer children. The range of jobs and professions open to them will expand. The Ministry of Labor is already compiling a list of jobs women will be permitted to hold. It won't include all jobs -- no female miners or construction workers here -- but it will be a much longer list than in the past, including some positions in law enforcement."
'Egyptian women: performing in the margin, revolting in the center' (Zainab Magdy, Open Democracy)
"But when revolting is over, do we go back to performing in the margins, trying to shift our positions for a breath? Where do we go in those intervals when the majority of the nation prefers to live in the comfort of the lie that is SCAF's honesty? Now that we've taken a break from the performative act, I feel that there is no going back. There is fluidity in defining the performer and those watching. There is also an awareness of the difference between both states so that the performer becomes aware of the politics of such a performance and so becomes more powerful."
'The Arab League to Syria's President: It's time for you to go' (Rania Abouzeid, Time)
"But instead of diplomatic politesse, proceedings were thrown into disarray after Saudi Arabia, stepped out of the background role it has played so far in the Syria crisis, to forcefully push for an end to the Syrian government's ferocious crackdown against its opponents. For months, Qatar has taken the lead on Syria. In a move that likely persuaded other countries, especially Gulf states, to take a stronger line against Damascus, Saudi Foreign Minister Prince Saud al-Faisal told his counterparts that his country would withdraw its observers from the much-criticized League monitoring mission in Syria due to the continued shedding of "blood that is dear to us all.""
Perhaps she should have spoken to economists before making such a stupid statement.
EU's proposed move to ban Iranian oil will merely add to the pressures on Greece, Spain and Italy.
http://www.thehindubusinessline.com/opinion/columns/article2823254.ece?homepage=true
Marco Pietropoli, an economist at RM Wealth Management, told Iranian broadcaster Press TV that blocking Iranian crude from the market could spell trouble for a weak European economy.
"The last thing that many countries need is a further upswing in oil prices, which may damage the economic situation," he was quoted as saying.
Read more: http://www.upi.com/Business_News/Energy-Resources/2012/01/17/Oil-market-not-good-for-Europes-economy/UPI-32291326804316/#ixzz1kKIZLAVg
The most likely outcome of an embargo on oil purchased from Iran is that the countries participating in the embargo buy less oil from Iran while other countries not participating in the embargo by more oil from Iran...While this would produce some dislocations, if total world oil production doesn't change, it would have little effect on either Iran or oil-consuming countries, and would basically be a symbolic gesture.
http://www.economist.com/blogs/freeexchange/2012/01/oil-prices
All Ashton and the EU have done is guaranteed India, China and probably a number of South American countries favorable oil prices, which India has already taken advantage of.

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