UPDATED below
The sanctions against Iran are a self inflicted wound for the west as they increase economic pain on Europe.
The decision of the EU to no longer buy Iranian oil starting in July was ridiculous. Oil will become more expensive for those who sanction Iran and cheaper for those who do not, primarily India and China. Iran will not feel any significant pain over this.
But the U.S. is still pressing for even more sanctions. All banks in the word use the technical telecommunication provider SWIFT to exchange data between them. The U.S. now wants to cut Iran out of that. This is quite extreme economic warfare:
Representatives from SWIFT are scheduled to meet with European Union officials this week, according to US official familiar with the talks. The meeting is expected to result in the EU ordering SWIFT to expel at least some of its sanctioned banks. It is unclear, however, whether the order will extend to Iran’s Central Bank.
It would be crazy for the EU to allow such a precedent. SWIFT has never been used for sanctions as it is simply a technical exchange. What is next? Stopping all telephone lines to Iran or anyone the U.S. doesn’t like?
But two can play the game. Iran will not wait until July to stop oil delivery to Europe:
In response to the latest sanctions imposed by the EU against Iran’s energy and banking sectors, the Islamic Republic has cut oil exports to six European countries.
Iran on Wednesday cut oil exports to six European countries including Netherlands, Spain, Italy, France, Greece and Portugal.
The southern European countries, if they can get crude oil from other sources at all, will have to reconfigure their refineries significantly to be able to process other than Iranian crude. It is likely that this immediate stop of Iranian oil delivery will lead to shortages of gasoline in those countries. That will come on top of anti-austerity riots and high unemployment in the southern European countries and will certainly hurt their stability.
Iran also announced today that it put its first self-made 20% enriched fuel elements into the Tehran Research reactor and that it sent a letter to the EU “welcoming” the P5+1, the UN Security Council veto members plus Germany, readiness to return to the negotiating table.
This three part message, pressure on Europe through Iran’s own sanction, success with its civil nuclear program despite sanctions from Europe and the readiness for new talks might soften the European position towards Iran.
This could be a chance for the EU to stop the stupid urge of some of its politicians to follow U.S. bellicosity against Iran. Publicly rejecting to push further sanctions on Iran through manipulating SWIFT would now be the right thing to do. But will the EU politicians understand that?
UPDATE: Iran oil ministry denies state media reports on EU oil stop
(Reuters) – Iran’s Oil Ministry denied state media reports on the Islamic state stopping its crude exports to six European countries on Wednesday.
“We deny this report … If such a decision is made, it will be announced by Iran’s Supreme National Security Council,” a spokesman for the ministry told Reuters.
Hmmm – and who told Press TV the opposite? Who is playing this psy war?