http://www.nytimes.com/2011/12/06/world/middleeast/threatened-by-new-sanctions-iran-warns-of-250-oil.html?ref=world
Sylvia C.
Ryan Maness 10 am
Monday, December 5, 2011
Iran, Facing New Sanctions, Warns of Oil at $250 a Barrel
Western nations have discussed sanctioning Iran after mobs stormed and vandalized Britain's diplomatic facilities in Tehran less than a week ago. This past Monday, Iran's foreign ministry warned that the global price of oil would more than double if sanctions were imposed to block oil exports from the country. Despite this threat, oil prices had little change by the end of Monday. In my opinion, even if Iran did increase oil prices, other oil producing countries would take the opportunity to make more money by filling the gap. The Iranians would be hurt the worst if they decided to increase prices since oil sales are the main source of Iran's income. Regardless to this threat, the U.S. Senate unanimously passed economic sanctions against Iran on this past Thursday.
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I agree, the idea that Iran could convince all OPEC nations and other major oil producers to not aggressively fill the demand that would fall off of Iranian sources with such a price explosion seems quite far fetched. This article goes to show how messy Iranian government is on the inside.
ReplyDeleteMatt Piscitelli
Maness F 9:00
I would have to agree as well. This seems to be a bluff by the Iranian government to flex its muscles to send a message. It seems to me that if these sanctions were going to be imposed that a fairly reasonable plan was set in the event that Iran severely raised prices or cut off supply.
ReplyDeleteKyagaba David Lwanga
Ryan, Friday, 10am
I agree that this does seem to be a bluff on the part of the Iranian government in order to stop countries from implementing stronger sanctions of Iran. On the other hand the Iranian government has a bid advantage. It seems that they have nothing left to lose since they are already suffering from all the sanctions that are being imposed on them. From now on they will have to be care on all side.
ReplyDeleterocio clara
Ryan friday 10am
I also agree, this sounds like a little bluff by their government. i think their just trying to scare some countries and they want to send a message. Maybe it could be because they want to stop some countries from implementing bigger sanctions of Iran. This is a perfect example of an article that shows how Iran's government is pretty messed up, but than again they have nothing to lose because of the fact of all the sanctions that are being done on them.
ReplyDeleteAndres Ortegano
TA Ryan friady @ 10 am