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Impacts of European sanction against Iran

On January 23, under the US pressure, the EU foreign ministers approved new sanctions against Tehran to prevent the union’s member states from buying the Iranian crude OIL or doing business with the Central Bank of Iran (CBI) and to freeze Iranian assets across the union. The sanctions went into effect as of Sunday, July 1.

Sanction against Iran will cause undesired result for other countries especially European union. Unilateral sanctions against Iran will have a negative impact on reaching an acceptable resolution. Sanctions have always failed to have an impact on the Iranian nation’s resolve to achieve progress and they will continue to fail in future. In addition to this any EU-engineered measure against Iran’s national interests will project a negative image among Iranians and European nations.

The EU is trying to deviate world public opinion from its internal woes by means of imposing an embargo on Iranian oil, which will take effect from July 1. Also Iran is continuing negotiation about its nuclear program with 5+1group. Behavior of Iran should interpret to obey from international law and regulation. But approve more sanction against Iranian nation is crystal clear symbol of unfair motivation.

Another effect can refer to that is EU sanctions against Iran will both hurt talks between Iran and the P5+1 group, and aggravate the economic and social problems in European countries.

there is some financial problem according to apply new sanction .The U.S. and EU should expect rising problems (in their states) such as intensified financial and economic problems, as well as further social protests, in addition to political and diplomatic consequences of the sanctions.

The shortage of Iranian oil in international markets will have a very negative effect on the countries imposing [anti-Iran] sanctions and can strain the market atmosphere

The reduction in Iranian exports may become the biggest supply disruption from a member of the Organization of Petroleum Exporting Countries since an armed rebellion all but halted pumping in Libya last year, according to the International Energy Agency. It also comes as a strike by Norwegian workers is curbing flows from North Sea fields.

Iran, the second-biggest producer in OPEC after Saudi Arabia, was producing about 3.3 million barrels a day in May. Full implementation of sanctions will remove about 1 million barrels a day during the second half of the year as buyers disappear and Iranian storage tanks become full, the Paris-based IEA forecast in a June 13 report.

The United States and other Western countries accuse Iran of secretly developing nuclear weapons, while Iran has insisted its nuclear program is purely civilian. The United States, which has imposed its own sanctions, and its allies are looking to deprive Iran of much-needed oil revenue in the hope of constraining Iran to scale back its contentious nuclear activities.

E.U new slapping sanctions against “the second major OPEC oil producer” will bring about fluctuations in the oil market and damage the global economy. It can be seen in European official’s statement that emphasize on negative impact of sanction on oil price and financial crisis. “We expect Brent oil prices to be supported by Iranian oil sanctions and potential loss of supplies from the North Sea,” Gordon Kwan, the head of regional energy research at Mirae Asset Securities based in Hong Kong, said in a June 28 report. “The imminent EU insurance ban on tankers carrying Iranian crude could drive up demand for Brent and Dubai crude.” in conclusion can say majority of problem and negative effects goes back to European government and financial crisis, in other words this sanction approve and applied against European nation and will overshadow financial problem and welfare situation in region

 

 

Habiballah Fazeli

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