Editor in Chief: Moh. Reza Huwaida Tuesday, April 23rd, 2024

Iran-West Brinkmanship and Energy Price

Iran-west brinkmanship has entered into a new period, which has already caused energy-supply panic across the globe. Tehran is one of the largest oil producers as well as exporter which helped the country to refurbish over consumers' differences. In others words, due to its large oil and gas reserves, energy hungry countries have tried their best to maintain relation to a convenient level that ensures continuous energy supplies.

Meanwhile, Tehran has always used its natural reserves for political and diplomatic brinkmanship in the international spheres. In addition, its controversy with western countries, which once used to be the largest shoppers, has the direction of its oil exports. It struggled to find new consumers which can help Tehran against its western foes and ensure the safety of continuous energy exports.

Now Europe only buys 5 hundred barrels per day, which, however large, but not significant, and its big costumers are three giant Asian economies like India, Japan and China—three Asian powers potent to create stumbling block ahead of severe punitive resolution of the United Nations.

No matter to what extent the United States of America and its allies push for tough resolution against Iran, major countries stand in opposite and do not allow the storm hit hard. It should be noticed, in spite of oppositions, several resolutions have been passed which restrict technological, political and economic ties with the country. Those resolutions made many to alarm Iran that its energy lobby would not work in the case for there is no choice for it allies.

Anyhow, its oil and gas have worked out well and avoided the country to encounter an Iraq of Saddam Hussiens' like sanctions. But western countries, on top, US disappointed of Russia and China have decided to impose unilateral sanctions against the country.

Recently, several European countries have talked about imposition of sanctions over its energy sectors seemed above punitive measures previously.

Though, Europe is not the biggest consumer, the prospective of the measure seemingly has proved horrifying. In this juncture, Tehran has showed flexibility over its nuclear program, the main factor behind years of controversy. Instead it has held a tougher stance to force Europe avoid imposition of sanctions.

Tehran political and military officials have warned that the country will close strait of Hurmoz in the case of any military attacks on its nuclear sites. The warning has already poked the ticking beat of energy market with nil. Though, as experts maintain, the affect would be for a short term, but oil price has increased.