Previous: Iran's military showcase
Iran's banks and oil industry have been the focus of the sanctions. But, like consumer products and computer equipment, Iranian merchants, government officials and clients have managed to bypass a number of restrictions on trade. Look, for instance, at South Korea, Japan and India, all of whom are considering resuming trade with Iran.
The EU oil embargo and U.S. sanctions were intended to hinder Iran's nuclear program by hemmoraging its economy, which is largely based on the flow of petrodollars. Before the EU sanctions prohibited marine insurance companies from offering coverage to Iranian crude shipments, South Korea was listed as one of Iran’s top five crude buyers. Now, however, Iran has offered $1 billion-worth of insurance on shipments to Seoul. The offer is alluring, forcing South Korea to consider to pros and cons. Though it's Asia's fourth-largest economy, South Korea has no natural resources and has been unable to replace the crucial Iranian crude supplies.
Meanwhile, India and Japan have already bypassed sanctions by extending maritime and state-run insurance to domestic tankers transporting Iranian crude. This could mean a huge boon in the Iranian economy.
The sanctions have certainly hurt the Iranian economy. But global markets are fluid, meaning that sanctions and prohibitions can only temporarily cut off supply – merchants and suppliers will find ways to bypass restrictions to buy and sell the products that people need, like Apple products.
The US, Israel and the UK do not want to see a nuclear Iran. But what does it matter to South Korea, India and Japan, who desperately need crude oil? With a show of military might, economic flexibility diplomatic stubbornness, Iran has emerged as an annoyingly foe—and a frightening one.
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