Oil Embargo on Iran

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Oil Embargo on Iran

The European Union on Monday decided to ban imports of oil from Iran, in a bid to punish Tehran for its nuclear program, which is considered a form to develop a nuclear weapon program. The embargo takes effect immediately and means that any newly proposed contract between Iran and the European Union is to be terminated. The ones that are running at this moment will continue until July, when they must be suspended.

The EU embargo follows similar actions taken by the United States of America, which imposed a ban on transaction with Iran for all the countries that are doing business with the United States. In other words, the companies that want to do business with America must refrain from doing business with Iran.

British foreign minister William Hague said that the decision of EU shows the resolve of the European countries, which are not going to allow Iran to develop a nuclear weapon. In their opinion, the developing of an Iranian program would launch an arms raise in the Middle East, which would make this already volatile region very dangerous for the peace of the entire world.

William Hague argued that the decision comes as result of the breaching of the UN resolutions and of the refusal to engage in serious talks with the Western powers over the nuclear program.

Hague said that the “unprecedented set” of sanctions is expected to influence other countries in imposing the same kind of actions on the regime in Tehran. The European Union is the second-largest importer of oil from Iran after China. China has argued that imposing sanctions on Iran is an abuse of the United States, which, in Beijing’s opinion, means an imposing of the American law on another state.

There are European diplomats who fear that the gap left by the European decision could be filled by Asian countries, which is why they are ready to intensify their dialogue with the Asian countries in hopes that they would join the embargo.

Japan has already announced that it would support the embargo and is engaged in negotiations with Saudi Arabia to acquire oil from this country, which is the major competitor of Iran on the market.

Iran has manifested its interest in negotiations with the world powers on the nuclear program, which Tehran says is only focused on producing energy for the country. However, the regime made it clear that it would respond to any embargoes imposed on it by closing the Strait of Hormuz, through which some 40 percent of the world’s oil is flowing.

On Sunday, U.S. aircraft carrier USS Abraham Lincoln passed through the strait, accompanied by British and French warships. Closing the Strait of Hormuz would bring with it a radical raise of prices.

The Western powers saluted the proposition to talk, urging that they did not seek any conflict and confrontation but were not able to say what exactly is Iran ready to do about it.

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