Iran Oil Embargo Could Hurt Europe and Help China, Russia

[Purveyor]

The proposed ban on Iranian oil imports could do more harm to West than to Iranian regime

By Jessica Rettig
November 30, 2011

On Thursday, Europe's foreign ministers are planning to meet in Brussels, where they will discuss whether to implement an Iranian oil import embargo as a way to pressure Iran to halt its nuclear program. France, in particular, has been advocating such a measure after an international report earlier this month revealed that Iran is moving closer to building its own nuclear weapon.

While the international community seems to agree that something should be done to prevent Iran from increasing its nuclear capabilities, some worry that imposing an oil embargo or other sanctions affecting the country's oil industry could do more harm to the countries imposing the measures than to the Iranian regime itself.

As they face precarious economic situations, countries like Greece and Italy have expressed reluctance to cut off oil imports from Iran, fearing that an embargo could drive up costs of fuel. On the other hand, proponents of the embargo say that the loss of Iranian oil on world supply could potentially be compensated for with increased supply from other oil-producing states, like Saudi Arabia or Libya. Already, for instance, the price of Russian crude oil—which is considered a reasonable substitute for the type of oil produced in Iran—has risen with talks of an embargo.

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http://www.usnews.com/news/articles/2011/11/30/iran-oil-embargo-could-hurt-europe-and-help-china-russia