In an effort to squeeze Iran into submission over its nuclear policy, Congress and the White House are edging toward a gasoline embargo. This would do nothing to force Iran into submission. In fact, it would be a blessing for the hard-line government to once again be able to point to a foreign threat to justify domestic repression and consolidate its base at a time when opposition to President Mahmoud Ahmadinejad is increasing among conservatives.
An effective gasoline embargo can only be implemented through a naval blockade. This would require U.N. Security Council approval — a tortuous process with no certain outcome. An embargo without U.N. approval is an act of war according to international law, and Iran has declared that it would be met with force.
But even if the Security Council were to miraculously unite, success would still be out of reach. The economics of a gasoline embargo simply doesn’t make sense. Iran imports roughly 40 percent of its domestic gasoline consumption at world prices and then sells it along with domestically refined gasoline at a government-subsidized price of about 40 cents per gallon. As a result, domestic gasoline consumption is high. It is also smuggled and sold to neighboring countries.>>>
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