http://www.washingtonpost.com/world/middle_east/iran-halts-oil-shipments-to-britain-france/2012/02/19/gIQAnLtUNR_story.html
Iran has decided to cut off oil shipments to Britain and France as a retaliation for them supporting "economic sanctions against the Islamic republic."
This is a huge loss for Iran, as 18% of their petroleum exports go to European customers.
This move is largely symbolic, and its effect will be minimal on France and Britain. Britain no longer imports oil from Iran, and France is in the process of phasing out Iranian crude, which currently makes up less than 4% of the country's oil imports.
However, this hasn't stopped global oil prices from shooting up to an eight-month high as investors weigh the chances of shortages occurring.
In the meantime, Western powers continue to encourage Iranian officials to halt nuclear programs. If Iran makes it clear that they do not want to do so, European Union nations will exclude Iranian banks from the international financial messaging system (Swift), making it harder for Iran to collect money from its foreign oil sales.
Despite these threats, Iran has staunchly refused to halt any programs they may be conducting. The White House and Obama administration are trying to undermine any idea that they may be using military force against Iranian nuclear facilities.
Iran has decided to cut off oil shipments to Britain and France as a retaliation for them supporting "economic sanctions against the Islamic republic."
This is a huge loss for Iran, as 18% of their petroleum exports go to European customers.
This move is largely symbolic, and its effect will be minimal on France and Britain. Britain no longer imports oil from Iran, and France is in the process of phasing out Iranian crude, which currently makes up less than 4% of the country's oil imports.
However, this hasn't stopped global oil prices from shooting up to an eight-month high as investors weigh the chances of shortages occurring.
In the meantime, Western powers continue to encourage Iranian officials to halt nuclear programs. If Iran makes it clear that they do not want to do so, European Union nations will exclude Iranian banks from the international financial messaging system (Swift), making it harder for Iran to collect money from its foreign oil sales.
Despite these threats, Iran has staunchly refused to halt any programs they may be conducting. The White House and Obama administration are trying to undermine any idea that they may be using military force against Iranian nuclear facilities.
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