Iran Retaliates Against the West for Coming Sanctions
There is not a day where either Iran or the West ratchets up the tension over the Iranian development of the nuclear bomb. Since Obama and Europe have agreed to end their business relations with Iran slowly at first but totally OFF by July, Iran has been busy trying to retaliate in some fashion. Yes, the military closing of the Strait of Hormuz probably will come to pass, at least, for a short time and probably be prolonged because of the mines that Iran will use to keep oil tanker traffic to a crawl.
Now, Iran's government has sort of turned the economic choking onto the West. Iran is not an isolated country, in fact, if you go to Iran you will see tons of Western consumer goods there being sold. So, Iran, starting in a week or two, will beat the West to the punch, so to speak, by cutting Europe off from its oil for the next 5-15 yrs. Remember, many countries in the EU get a good amount of it from Iran. Saudi Arabia has promised to fill the void. The other thing Iran will do is to halt doing business with many Western companies (Mazda, Kia, Samsung, Shell, BASF, Renault, Siemens, Fiat, Hyundai, Volvo, BP) and stop importing all of their products.
The cutting off the oil to Europe could be serious when lasting YEARS. Right now, the US sanctions are in terms of MONTHS. Would the EU be able to survive without Iranian oil and would Saudi Arabia be able to fill the loss for years?
Remember, China is heavily invested in Iran to the tune of billions. They get most of their oil from them and are willing to use gold instead of dollars for it. India, is a lesser partner in Iran, yet, it too will use gold instead of dollars for Iran's oil to bypass the sanctions. This means for Iran, their main oil customers and their main revenue source continues to flow circumventing the banks that the sanctions deal with.
Iran will hurt from the sanctions as they tighten, but sometime before July, the whole issue will explode, in some manner. Both sides are preparing and we are approaching "high noon" at the OK Corral.