Wednesday 2 December 2009

"... decide between accepting an Iranian nuclear bomb or bombing Iran"

Link


Tanter sees no use in more sanctions, yet he calls for them, basically hoping for eternal enmity with Tehran. ....
MASH, here


"...... The success of such sanctions centers on restriction of Iranian imports of refined petroleum depends on the degree of economic hardship and whether it threatens the regime’s hold on the population; economic impact depends on whether Iran’s refined petroleum suppliers participate in sanctions........

Unilateral options for the United States to restrict such imports are limited because Washington already prohibits U.S. persons from conducting business with Iran, particularly in the oil and gas sector; it is doubtful that import denial via naval blockade is among options on the table at this time for the Obama administration, although there is sentiment on Capitol Hill for blockade.

Unilateral steps short of blockade will have only a marginal impact. The Iran Sanctions Enabling Act of 2009, which passed the House and Senate during mid-October, would allow state and local governments to divest from companies doing business with Iran’s petroleum and natural gas sector. But divestment is unlikely to compel corporations to cut ties with Iran.....

That said, the toughly-worded resolution of November 27 reportedly “had unusual backing from Russia and China, broadening the message of international displeasure with Iran that is frequently voiced in the West.” Beijing is apparently sensitive to the argument that without support for tough diplomatic stance against Tehran (perhaps including another round of sanctions), Israel is likely to take military action that would interfere with Chinese supplies from Iran. The jury, however, is out whether China would vote for sanctions that target Iran’s economy.

The United State has reportedly persuaded the UAE and Saudi Arabia to surge oil exports to China in the event Iran cuts off oil exports in retaliation for Chinese participation in gasoline restrictions. Given Saudi dedication to oil price stability, however, it is unlikely any surge in oil exports will be large enough to make up for China’s loss of Iran as Beijing’s number two supplier of oil.

Even if some of Iran’s international suppliers were recruited to stop selling gasoline to Tehran, the Iranian regime has options to plug any supply gap. For one thing, the IRGC is heavily involved in smuggling goods, oil and gasoline included.

Venezuela has signed a deal with Tehran to supply 20,000 bbl/d of gasoline, which would help plug any shortfall created by sanctions. If Russia so wished, it has enough excess refining capacity to plug the gasoline gap. And though there is always cause for skepticism about Iran’s technical-industrial prowess in the petroleum sector, Iran’s expansion of refining capacity to make the country self-sufficient in gasoline production could be in place by 2012, making import restrictions irrelevant: Any sanctions storm will only need to be weathered for about two years.

(CONCLUSION) Given the Iranian regime’s continued refusal to surrender its nuclear programs in response to economic incentives and threats—what Iranian President Ahmadinejad has characterized as “chocolate in exchange for gold”—gasoline sanctions are unlikely to have enough impact to cause a strategic rethinking in Tehran.

(when you just thought he was through...) This is not to say they should not be tried, because any economic pressure, even if it not decisive, is welcome....... Because of the low likelihood of success of another round of sanctions, the breakdown in nuclear talks, and the absence of a regime-change alternative focusing on the Iranian opposition, the West is moving toward having to decide between accepting an Iranian nuclear bomb or bombing Iran."


Posted by G, Z, or B at 12:26 PM

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