Iran’s Empty Threat

Iran is threatening that, if antinuclear sanctions are strengthened, it will cease all oil exports to the West.

However, this is unlikely to have any significant affect on price, as Iran is already exporting its lowest levels of oil in 25 years. Current sanctions have already limited Iran’s ability to export oil, meaning they are making an empty threat. Clearly, with Iran’s economy already hurting from sanctions and more on the way, Iran is trying to play an empty hand in an attempt to alleviate their difficult situation.

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1 Comment »

  1. beehlerm Said,

    October 24, 2012 @ 2:25 am

    this article was very interesting. Especially, when it was discussed that speculation of price increases in oil for suppliers might have caused an early increase in prices. We discussed this behavior in class. It is worrying that this sort of speculation can allow for such a big tax on people’s budget. The vulnerability of the oil market due to our dependence on it is very concerning.

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