41. Using US Strategic Reserves to Moderate Potential Oil Price Increases from Sanctions on Iran
- Author:
- Philip K. Verleger
- Publication Date:
- 02-2012
- Content Type:
- Policy Brief
- Institution:
- Peterson Institute for International Economics
- Abstract:
- The United States has initiated new sanctions against Iran aimed at preventing it from collecting revenue from exports of crude oil. The European Union has followed, embargoing all imports of Iranian crude from July 1, 2012 and preventing any firms from entering into new contracts to import Iranian oil after January 23, 2012. The new US and EU sanctions could be the most draconian in many years. If implemented fully, US sanctions would force trading partners to choose between the United States and Iran. EU sanctions would cut Iran off from an important market. These sanctions, while reducing Iranian income, could pose a very serious economic threat to countries that have significant trade with the United States and/or import significant quantities of oil from Iran.
- Topic:
- Conflict Resolution, Foreign Policy, International Trade and Finance, Markets, Oil, and Sanctions
- Political Geography:
- United States, Europe, Iran, and Middle East