A smarter way to sanction Iran
The Christian Science Monitor / Hossein Askari
26-Sep-2009 (4 comments)

In an effort to squeeze Iran into submission over its nuclear policy, there is talk, as Secretary of State Hillary Rodham Clinton has put it, of adopting "crippling sanctions" on Iran.

Although the Obama administration has not spelled out the nature of these crippling sanctions, politicians in Washington have floated two bad options: halting Iran's import of gasoline, and embargoing its oil exports.

The US should drop these potential sanctions and instead enforce a bold new campaign to devastate Iran's financial sector – using existing US laws.

To set up an effective gasoline embargo, the US would have to go to the UN Security Council for approval – a lengthy process and by no means certain. Perhaps even more important, a gasoline embargo would help, not hurt, the regime in Tehran.

Here's why: The government of Iran imports a sizable part of its domestic gasoline needs. It sells those imports along with domestically refined gasoline at a heavily subsidized price. This subsidy encourages waste, but it also dramatically reduces government revenues.

The regime hasn't been able to eliminate this subsidy and increase the price of gasoline for fear of a domestic backlash. If the US imposed a successful gasoline embargo, Iran would then be able to decrease domestic consumption, eliminate smuggling, and increase government revenues. Jackpot.

The added bonus for ... >>>

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Penalizing dishonest Iranians

by seannewyork on

This would only hurt Iranains who are not following the US laws who are taking advantage everything US has.

 But long term the regime would be hurt because the economy would collapse.  This would be a destabizing blow to the and a win for the Green Movement

Its funny Iranians want freedom but dont want to make sacrifices.


AN was right

by verytass on

Ahmadinejad was right. Obama made a mistake at G20. Sanctioning iran will be next to impossible. Why? 

US economy is teetering near collapse, smallest shock to the system could have devastating impact to the whole system. The last thing anyone in US or abroad would want is to rock the boat now and cause a devastating impact on the economy. 

 The ultimate outcome of this stance against Iran is shift of power from west to east. China is gradually taking over Africa, Middle East will follow next




Mr. Askari is proposing to penalize Iranian-Americans?

by didani on

instead of the regime? LOL!!!



by seannewyork on

Very interesting concept of what US Treasury can do