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Sanctions Against Iran Gain Momentum
While Iran is the world's 4th largest oil producer in raw black crude, because of its own politcal anti-west position and jihad for the past 20 years, it ironically must import 40% of its refined oil products. You would think that Iran would not be so stupid about the situation. Most of its raw crude must be sent out to other countries to be refined and then returned for everyday use. This has got to be the dumbest economic policy ever. The net effect costs Iran billions of dollars yearly, dollars that could to their people, their education, welfare etc. All for ego and national pride of its governmental leaders.
Slowly, sanctions against Iran for continuing its nuke program take effect. Shell Oil just announced it will stop gasoline sales to Iran. This was a direct result of Obama's plan to punish companies who supply petroleum products to Iran. Last week, Ingesoll-Rand forced its subsidiaries to stop selling to Iran, as did Caterpillar, Huntsman, GE, and Siemens AG. Energy companies like Glencore, Trafigura, Vitol were also planning to stop sales to Iran of refined petroleum products. The huge BP, British Petroleum, who bought the American oil giant, Mobil, halted shipments a year ago. The French company, Total SA, may halt fuel shipments to Iran also.
Now the kicker to the sanctions. For every company that does halt refining Iran's oil into consumer products that are returned, there is country or company that Obama's sanction policy cannot touch because the company is not American or American related.
The biggest hurdle is China. It receives much what Iran produces, refines it, then ships it back. China has no intention of stopping this. China is so big and has so much political clout, it can make or break world policy and have direct impact on countries. Other countries like Azerbaijan are also reluctant because they need the trade and income. Iranian oil can be trucked over the border, refined, and returned. The other kicker is: Obama's sanctions will have no impact on Iran's oil exports to Europe. Europe uses much of Iran's raw crude for their own domestic consumption. Yet, still another kicker is, Shell, although it stopped its refined oil shipments, it still is developing Iran's natural gas fields in the Persian Gulf and has not sold its interests in Iranian firms etc.
So, WTF. What a puzzle mess Obama is trying to navigate. It is like a intricate spider web to try to make the sanctions be effective. Shell stopped gasoline shipments, yet, refuses to divest in Iran's natural gas and other areas. China is just giving Obama the big FU. Russia will probably do what they do best, appear they are for sanctions, yet, like Shell, continue to do business with Iran and make money.
All Obama can say to himself is, " hey man, I tried. That's all I can do".
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