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Page added on December 4, 2011
Iran says oil would go over $250 if exports banned
Iran warned the West on Sunday any move to block its oil exports would more than double crude prices with devastating consequences on a fragile global economy.
“As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel,” Foreign Ministry spokesman Ramin Mehmanparast said in a newspaper interview.
The comments come as Iran strives to contain international reaction to the storming of the British embassy last week, a move which drew immediate condemnation from around the world and may galvanize support for tougher action against Tehran.
Washington and EU countries were already discussing measures to restrict oil exports after the United Nations nuclear watchdog issued a report in November with what it said was evidence that Tehran had worked on designing an atom bomb.
Iran says its nuclear program is entirely peaceful.
The U.S. Senate voted on Thursday to penalize foreign financial institutions that do business with Iran’s central bank
— which takes payment for the 2.6 million barrels Iran exports a day. The European Union is considering a ban — already in place in the United States — on Iranian oil imports.
So far neither Washington nor Brussels has finalized its move against the oil trade or the central bank amid fears of the possible impact on the global economy of restricting oil flows from the world’s fifth biggest exporter.
But the British embassy attack dragged relations with Europe to a long-time low and Iran is now facing rising rhetoric about a direct hit on its main source of foreign earnings.
Until recently, Iran had dismissed as ineffective mounting sanctions aimed at forcing it to halt its nuclear activities. Mehmanparast’s comments show a more defensive stance.
“No one welcomes the sanctions, we know that sanctions create obstacles, but we want to say we will overcome these obstacles,” Mehmanparast told Sharq daily.
“Imposing sanctions on oil and gas is among the sanctions that, if one wants to do that, the consequences should be fully considered before taking any action,” Mehmanparast said.
“I do not think the situation in the world and especially in the West today is prepared enough to raise such discussions.”
Britain’s embassy in Tehran was ransacked on Tuesday after London announced unilateral sanctions on Iran’s central bank. London evacuated staff, closed the embassy and the biggest EU states withdrew their ambassadors in protests.
Rising tensions were enough to push up crude prices with ICE Brent January crude up 95 cents on Friday to settle at $109.94 a barrel.
Mehmanparast warned the EU on Saturday to avoid tying itself to British interests.
10 Comments on "Iran says oil would go over $250 if exports banned"
armageddon51 on Sun, 4th Dec 2011 1:38 pm
A good title for a book in a few years ; “How the West Shot Itself in the Foot and made a Collective Suicide after Imposing an Oil Sale Embargo on Iran.”
Johny K. on Sun, 4th Dec 2011 2:14 pm
Strategic petroleum reserves all over the world will last long enough to destroy all nuclear facilities in Iran. In modern days, a couple of days or even a single day is enough to do that
After that, no sanctions will be necessary, because Iran will be no more treat to anyone
jaime on Sun, 4th Dec 2011 2:33 pm
let it be written and let it be done,let see what existence really is and which side, is at right of way ?on this I will say.cattious Iran will not stumble.
MrEnergyCzar on Sun, 4th Dec 2011 4:45 pm
Iran is one of the west’s drug dealers. We’ll go into severe withdrawal if we impeded the flow of that drug to us…. The drug will just go to a newer addict, China…
MrEnergyCzar
FarQ3 on Sun, 4th Dec 2011 4:56 pm
The powers that threaten Iran are all nuclear armed, of course Iran will try to develop a deterent. They know that the west want their oil at the expense of all Iranians. Iran is a modern country with healthcare, education and the people are comparitively well looked after in comparison to western countries. They are nothing like the Taliban. Bill Clinton signed an agreement to supply nuclear power to Iran in the 1990’s
MacDaddy on Sun, 4th Dec 2011 9:49 pm
Wander if this is part of strategy for a long time…they have Saudi, Kuwait, thinking of Iraq, then Afghanistan, Egypt, Libya, now Iran and Syria?….couldnt they have went and occupied these prepare to go to Iran and Syria’s oil for the offset of oil supplies?….this isnt looking good…
BillT on Mon, 5th Dec 2011 1:21 am
Iran has the capability to follow through with their threats. If you doubt this, you have either drank too much of the M.I.C. cool aid or you have been asleep for 20 years.
BillT on Mon, 5th Dec 2011 1:28 am
BTW: Johnny K…if they sink a few tankers in the channel in the Strait of Hormuz, it would take months, maybe years to move them and be able to ship 17% of the world’s oil again. (They have already mined the Strait with bottom huggin mines that can be released anytime.)
Mean while, Saudi Arabia is cut off from oil funds and their people revolt, the Shia’ see their chance and revolt in ALL of the other Middle East countries, and oil stops coming out of the Middle East totally.
Within 90 days, the economies of the West are gone. (Strategic oil reserves are not going to do much when those 10 million barrels a day stop flowing in.)
Harquebus on Mon, 5th Dec 2011 2:22 am
If you were a religious nut and had a shitload of oil, what would you do?
Shaved Monkey on Mon, 5th Dec 2011 7:02 am
“If you were a religious nut and had a shitload of oil, what would you do?”
What GW Bush did?