May 25, 2012
- Jan 30, 2012
By Andysheh DadsetanCrossing the Red LineThe United States, United Kingdom, and Canada imposed new and more stringent sanctions on the Islamic Republic of Iran this past month in reaction to a UN report that indicated that Iran is working on a nuclear weapons program. Iranian Vice President Mohammed Reza Rahimi responded to this overture by threatening that “not even one drop of oil will flow from the Strait of Hormuz” if these sanctions were pursued. However, with about a fifth of all global oil passing through the Strait of Hormuz daily, the prospect of closing one of the most important shipping lanes poses a strategic danger to oil markets and the global economy. Nonetheless, more countries – from Japan and the EU, to Angola and South Africa – have considered joining the U.S. in committing to sanctions against the Iranian Central Bank and the import or transport of Iranian crude oil or petroleum products, albeit gradually. Consequently, Iran finds itself further isolated, even from more traditional allies, and its buying power dwindling.
