Iran sanctions

-- As I wrote yesterday, every day that Iran does not retaliate for the SWIFT shut off, it gains allies. Every day it continues to function and shares its energy with its neighbors it becomes stronger, as the infinite growth beast becomes weaker. This is a classic case in point. System D is coming into full bloom here. China and many other nations are saying FU (again and more clearly) to the proposed U.S. oil embargo. We have much more detail of this historic contest on the World News Desk.

It is oh, so clear that Iran understands Peak Oil and is wielding it like a mace. -- MCR

Calls mount for waivers on Iranian sanctions

the National,

22 March, 2012

The UAE last night joined a chorus of countries hoping to be exempt from US sanctions against Iran.

The calls came after the United States government granted a reprieve to Japan and 10 European Union countries on oil imports from Iran.

"Economically, there's a strong case for the UAE to be exempt," said Mohamed Al Lahouel, the chief economist at the Dubai Department of Economic Development. "The UAE has historic commercial ties with Iran, and if the sanctions slow down trade that will be affected."

The comments reflect the UAE's aim to continue legitimate trade with its near neighbour even as global sanctions tighten.

While the UAE is not an oil importer, it does still have close links through trade of other goods. Bi-lateral trade between the UAE and Iran is worth about Dh50 billion (US$13.61bn) a year.

Turkey also hopes to be given a waiver. Its prime minister, Recep Tayyip Erdogan, plans to raise the issue with Barack Obama, the US president, during a nuclear security summit in South Korea this month, Turkish officials told Reuters.

Turkey imports about 200,000 barrels per day of oil from Iran, accounting for more than 7 per cent of Iran's oil exports.

"Turkey's absence from the United States' waiver list regarding the Iran issue doesn't mean it will not be included," the Turkish energy minister, Taner Yildiz, was quoted by Reuters as saying in Ankara yesterday.

India, another oil importer, has privately told refiners to cut imports from Iran, Reuters reported yesterday, citing a government official. The country was also left off the US list of exempted countries.

Agreed by the US Congress in December, the sanctions aim to penalise countries that continue to buy oil from Iran. Announcing the list of exempt countries, the US secretary of state, Hilary Clinton, said the actions of Japan and the EU nations were "not easy".

"They had to rethink their energy needs at a critical time for the world economy and quickly begin to find alternatives to Iranian oil, which many had been reliant on for their energy needs," she said.

France, Germany, Belgium, Greece, Italy, the Czech Republic, the Netherlands, Poland, Spain and the UK are the European nations exempt. It means they will not face the threat of being cut off from the US financial system under action designed to pressure Iran over its nuclear programme.

Under a US law agreed on December 31, countries have until June 28 to show they have made cuts to crude oil they buy from Iran.

South Korea and China, other big buyers of Iranian oil, were not given waivers.

Japan is estimated to have scaled back its purchases from Iran by 15 to 22 per cent in the second half of last year and has pledged to do more.

"We have told the US side that the trend of decrease would accelerate and Iranian crude imports will be reduced substantially from now on," said Osamu Fujimura, Japan's chief cabinet secretary.

The waivers could provide a lifeline to Iran's economy. Sanctions are already curtailing the supply of basic goods and causing the currency to plummet.

"[The waivers] will be positive for Iran," said Edward Bell, an economist covering Iran at the Economist Intelligence Unit.

"From some of the trading partners they can have access to heavy capital goods and cars."

Iran seeks 3 mn tonnes of wheat from India, to expand trade ties

Commodity Online,

22 March, 2012

NEW DELHI (Commodity Online): Despite persisting rice payments issues, Iran is looking to strengthen the trade relationship with India and has sought 3 mn tons of wheat for imports.

According to reports, Iran's both public and private firms has shown interest in buying 3 million tons of wheat from India.

Also two Indian firms have shown interest in shipping wheat to Iran but no exports has taken place.

Earlier, due to US sanctions, payment of rice imported from India was pending and with new payment mechanism it is being solved. This has given the firms confidence to continue trade relationship with Iran.

Meanwhile, Iran is also looking at imports of sugar, IT products, machinery, metal products, iron, steel, minerals, clothes, fibre, tea, wood and auto-mobiles from India.

India is expecting a bumper wheat harvest of 88.31 million tons in 2011-12. This is likely to boost the export prospects of the country.

India has exported almost 6 million tons of wheat to Bangladesh, UAE, Nepal, Thailand and other countries.

On Inter-Continental Exchange (ICE), wheat for March delivery traded up 1 2/8 cents to 637 4/8 cents on Thursday.

In India's National Commodity and Derivative Exchange (NCDEX), wheat fro April delivery traded up 0.4% to Rs 1258 on 22nd March at 11:30 IST.

Iran oil ban to break EU faster than Euro?

It's turmoil in the Arab world that's now threatening a bigger blow to the global economy, than the crisis in the Eurozone. The IMF Chief Christine Lagarde has warned that escalation of the situation with Iran, for example, could drive oil prices above 160 dollars a barrell. Let's now talk to RT's Peter Oliver.

Iranian minefield: Western error would ‘endanger Israel’s existence’

RT,

22 March, 2012

Any move - even the “slightest of errors” - which can be considered a hostile act against the Islamic Republic will jeopardize the very existence of the Israeli regime, Alaeddin Boroujerdi, a senior Iranian lawmaker, has said.

Boroujerdi, who is also the head of the Majlis Committee on National Security and Foreign Policy, warned the West that it should take Iran’s threats with all seriousness, Press TV reports. 

“Should the Western countries want to commit the slightest of errors regarding Iran, they will be gripped by such ramifications that will endanger the existence of the Zionist regime,” he is quoted as saying. "In case of any venture against our country, the aggressors will face a swift, resolute and serious countermeasure."

The harsh statement comes the same day as the US State Department revealed the list of 12 countries which may be subjected to American financial sanctions for failing to cut oil imports from Iran.

Israel has still not ruled out a military strike to stop Iran's nuclear research, considering the economic sanctions imposed by the US and EU to be insufficient. 

On Wednesday, the former head of the International Atomic Energy Agency and Nobel Peace Prize laureate, Mohamed ElBaradei, warned Israel that a military strike on Iran’s nuclear sites would not bring any good results and would only encourage the Islamic republic to develop nuclear weapons.

“You can bomb their facilities, but you cannot bomb their knowledge,” ElBaradei said. “If you were to bomb Iranian facilities, there would be a lesson for Iran – to develop nuclear weapons.”

Iran insists on the peaceful character of its nuclear program, while the US and Israel, backed by the majority of Western countries, continue to accuse Iran of developing nuclear weapons, though without any concrete evidence. All the intelligence gathered by US and Israeli spy agencies so far indicates that Iran’s military nuclear program was shut down way back in 2003.

Iranian officials have repeatedly promised an imminent retaliation to every country that dares to attack Iran.