Editor in Chief: Moh. Reza Huwaida Saturday, April 27th, 2024

The Hard Journey to Sanction Iranian Oil

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The Hard Journey to Sanction Iranian Oil

Amidst rising concern in United States of America, Europe, Israel and certain Arab countries over Iran's ambiguous moves to enrich Uranium at a higher level, in more arsenals and with more number of centrifuges, the quarrels over how to deal with the problem looms significant.Despite the country's call for resumption of nuclear talks with the world six powers, Iran's nuclear program remains as a high foreign policy priority for western powers and their Asian allies.

Military strike is considered as the concluding option for Israel and certain pro-Israeli circles in United States of America. To prove into Israel the potentially grave risks of a military strike against Iranian nuclear arsenals, Barack Obama administration has unwillingly talked on military solution. Previously, there were reports saying that the US president Obama had had tense discussions with his Israeli counterpart over how to address the problem.Following the series of talks over this very subject between US officials and their Israeli counterparts, on Friday, the top general of the U.S. army began a round of closed talks with Israeli leaders.

It came amid disagreements between the two countries over how to handle Iran's nuclear program.Army Gen. Martin Dempsey,Chairman of the Joint Chiefs of Staff, met Israel's prime minister, president, military chief Benny Gantz, and defense minister. Commentators said the U.S. general's visit highlights Washington's concern about a possible Israeli military strike against Iran. He is expected to urge Israel not to rush to attack Iran at a time when the U.S. is trying to rally additional global support to pressure Tehran through sanctions.

The hoaryanimosity between the United States and its allies on one side and the Islamic Republic of Iran and its supporting groups on the other, remains at the top of world's most favored media catches, besides other blowing stories in Middle East and the Central and South Asia.

Since the very first years following Iran's Islamic Revolution, the fight on nuclear program topped the agenda in Iran's relations with the western world and then it spilled over certain other areas. More economic sanctions against Iran provoked the country in recent months to warn on closing the Hormuz Strait, the passage for one fifth of the world's oil shipment. A new phase of arms race has just begun in the region, lining up the two anti and pro-western fronts.

Iran's new missile test fires few weeks ago led to the multi-billion deal of highly sophisticated aircrafts and intelligence devices between the US and Arab Gulf Countries. According to intelligence reports and security experts, the region would turn more unstable and unpredictable by a tough but covert fight being carried out to maintain military supremacy across the region. To avoid militarization of the current problem, the US and its European allies are supposed to impose new economic sanctions on the Islamic Republic. They said the sanctions would be aimed at bringing Iran back to the negotiation table following a long pause in talks on Iranian nuclear program.

The ongoing US presidential and congressional campaign to pressure the European Union, Turkey, Japan, China and India to halt importing Iranian oil and related financial transactions is facing resistance by the importing companies and countries. For the United States to insist and pressure the Iran-oil importing countries would increasingly turn into a greater liability for the US among what it frequently calls the "international community".

Few days ago, Timothy Geithner, US Treasury Secretary, began visiting capitals around the world to deliver the US's ultimatum to the governments of Spain and Italy that unless they immediately put a halt to Iranian oil imports, they would be risking US trade and financial reprisals. Not uniformly, but mostly, the countries have been rejecting the implementation of an immediate halt.

To further escalate pressures on the Islamic Republic, The European Union is readying its toughest action to date against Iran, moving to dry up funding of its contested nuclear drive by targeting both its oil and financial sector, diplomats said Friday. Foreign ministers from the 27-nation bloc meeting in Brussels on Monday are expected to agree to sanction Tehran's central bank — and possibly other banks — and announce an embargo on purchasing Iranian oil, EU officials and diplomats said.

Also expected are bans on the sale of gold, diamonds and other precious metals to Iran as well as delivering newly minted coins and notes. Existing bans on petrochemical imports and investment are due to be enlarged. Greece's dependency on Iranian oil meanwhile was holding up a deal on the timing and conditions of the oil embargo. The political willingness was in place, but the bloc was still in search of new suppliers able to match the easy conditions offered by Tehran to the cash-strapped nation.

Greece, which relies on Iranian oil for more than a third of its total oil imports, had concluded "good financial arrangements" with Iran that include 60-day payment and no financial guarantees, sources said. Diplomats said a political decision on the embargo was expected from the ministers on Monday although "the financial solution will require more time." The new EU sanctions are part of a concerted effort with the United States to pressure Iran into halting its controversial nuclear activities, which the West suspects are aimed at developing nuclear weapons.

The EU imported some 600,000 barrels of Iranian oil per day last year, according to the International Energy Agency, making it a key market alongside India and China, which has refused to bow to pressure from Washington. EU nations too have been divided over when to review the embargo to assess its impact on the likes of Greece, and whether it is undermining the global oil trade as well as Iran's economy. Already agreed is a deal to sanction Iran's central bank to freeze assets used to finance its nuclear drive.

With the increasingly choked economy, diplomacy and international trade ties, Iran has expressed willingness to go back to the table. Few weeks ago, the country declared its readiness to resume nuclear talks with world powers.

Iranian Foreign Minister Ali-Akbar Salehi declared on Saturday, December 31, that the Islamic Republic was ready to resume talks with world powers over its nuclear program. According to the US Energy Information Administration, twenty percent of the world's oil moves through the Strait of Hormuz, at the entrance of the Gulf, making it the "most important chokepoint" in the world.

The dispute over the channel flared this week after the Iran's Vice President, Reza Rahimi warned the west "not a drop of oil" would be able to pass through the strait if more sanctions were imposed over the country's nuclear program. The US responded by saying a closure "will not be tolerated."

An overall picture of the countries' economic ties with Iran suggests that the US move to impose further sanctions may encounter barriers. Iran's economic partners are insisting on a consensus-based and softer approach towards Iran's nuclear issue.

Chinese Assistant Foreign Minister Wu Hailong said FridayChina believes the Iran nuclear issue should be resolved peacefully through dialogues and negotiations, and that sanctions and military means will not fundamentally address the problem.

He said the top priority is that Iran should resume talks as soon as possible with the group of six international mediators, which includes the United States, Russia, China, Britain, France and Germany, and strengthen cooperation with International Atomic Energy Agency (IAEA). In addition to that, Turkey, Russia and other oil importing countries have expressed unwillingness for the new US plan to levy sanctions on Iranian oil and the country's central bank. This will lead to exhausting quarrel and continued disagreement over the long running Iranian nuclear program.

Nasruddin Memati is the permanent writer of the Daily Outlook Afghanistan. He can be reached at outlookafghanistan@gmail.com

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