The time has come to prepare an oil embargo against Iran.
In April, Secretary of State Hillary Rodham Clinton said that one option available to the United States, should Tehran refuse President Obama’s offer of engagement, is to pursue “crippling” sanctions. Although the Obama administration recently agreed to participate in a new round of talks with Iran, along with representatives of Britain, China, France, Germany and Russia, the Iranian government has already made clear its refusal to negotiate over its nuclear program. If, as seems likely, the United States is rebuffed by Iran on the nuclear issue, a sanctions plan needs to be ready.
Of the various sanctions options that have been discussed, an embargo on Iran’s oil exports offers the best chance of pressuring the country’s leaders to abandon their pursuit of nuclear weapons. While the United Nations Security Council is unlikely to adopt such severe sanctions, unilateral sanctions by the United States would still deter foreign companies from dealing in Iranian oil, the lifeblood of a regime that leads chants of “Death to America” and “Death to Israel.”
The Iran Refined Petroleum Sanctions Act, which is currently before Congress, provides the right model. While this act would sanction companies involved in supplying gasoline to Iran, similar legislation could be applied to foreign shipping companies, insurance providers, banks, oil traders and anyone else involved in purchasing, transporting, financing or refining Iranian oil. Companies and any of their subsidiaries that continue their involvement with Iranian oil would find our banking system, capital markets, ports, insurance industry and commerce closed to them. Similar sanctions by Britain could increase the pressure, since London is New York’s main rival as a global finance and insurance center.
Maritime insurance companies and refiners are likely to be the most effective targets for such sanctions. Unlike the tanker industry, which is fragmented, the maritime insurance industry is highly concentrated. Just 13 companies, known as P&I clubs, provide 95% of maritime liability insurance. If they are compelled to choose between underwriting ships that dock in American ports or in Iranian ports, the decision would be simple. Refiners would be effective targets for sanctions, because most of the major Asian oil refineries currently accepting Iranian crude belong to large corporations with business connections to the United States.
Though the Iranian regime has claimed that halting crude exports is one of its potential economic weapons, such threats are hollow. Indeed, while an embargo on Iranian oil would hurt Iran, it would not do serious harm to the global economy. Iran exports 2.3 million barrels of crude oil per day, which finances up to half of the regime’s budget yet represents less than 3% of global demand. Worldwide strategic petroleum reserves are almost 1.5 billion barrels — more than 20 months’ worth of Iranian exports. Private industry oil stocks add another 2.6 billion barrels, bringing total reserves to almost five years’ worth of Iranian exports. Iran may have close to $80 billion in foreign currency reserves, but it would run out of money long before the world’s oil stockpiles were exhausted.
Japan, China, India and South Korea are the main importers of Iranian oil, and arrangements should be made for them to secure oil from other sources. Saudi Arabia alone has more than 4 million barrels per day of spare production capacity, which could substitute for all of Iran’s exports. Considering their strategic interest in preventing Iran from going nuclear, the Saudis should be ready to play that role, just as they did after Saddam Hussein attacked Kuwait. If necessary, governments could release strategic reserves into the market to bring prices down, just as they did when Kuwait was occupied.
The threat of sanctions on rogue regimes often leads to accusations that civilian populations will end up suffering for the crimes of their governments. An oil embargo on Iran, however, would not threaten food security. In 2006, Iran reported to the U.N. Food and Agriculture Organization that it was between 95% and 100% self-sufficient for meat, poultry, wheat and milk. Moreover, many Iranians see oil revenues as fueling government corruption and patronage for favored groups rather than being used to provide social benefits.
The Obama administration should consult and coordinate with our allies and other international partners on an embargo and sanctions strategy. But this approach can succeed even without an international consensus. To be effective, an oil embargo need not be 100% successful. The Iranian regime is already politically off-balance after the presidential election fiasco. A severe budget crisis brought on by a significant drop in oil exports, together with problems importing gasoline, should induce the regime to prioritize its own survival ahead of its nuclear weapons ambitions.
The sight of empty oil tankers bypassing Iran on their way to fill up at Saudi, Kuwaiti and Emirati ports would focus the minds of Iran’s leaders unlike any action we can take short of war.
Abraham H. Foxman is national director of the Anti-Defamation League. He is the author of “The Deadliest Lies: The Israel Lobby and the Myth of Jewish Control” (Palgrave Macmillan, 2007).
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Time to embargo Israel until it stops stealing Palestinian land and homes.
UN has to embargo Israel for the killing of children!!!!!
Put yourself in the iranian leadership shoes what would you do if foxman plan was used.1 give in and probably be killed by your own people.2 adopt austerity plan and tough it out.3 hit arab oil facilites and israel with everything you got.Foxman needs to move with his family to israel where he can advocate a hardline to his hearts content.
This is typical Foxman--raise the temperature on an issue that is being quite competently handled by sane adults (ie, the Obama administration) to distract from the legitimate pressure currently on Israel. Should his irresponsible proposals ever be adopted, and the Scuds and worse start flying, I'm sure Abe will be far from the fracas, signing off on the next ADL fundraising letter, washing his hands of the latest threat to the Jewish people that he once again makes every effort to provoke.
Foxman has made himself totally irrelevant to Jews and goyim alike with his attempt to act like a thug with his bravado barking. It is time he leave more representative Jews of higher intellect to represent Jews in America. Zionism needs no enemies among Iranian exiles just because of his attempted mensch-hood through barking. Far too many Iranian liberals have said far too often to stop this kind of professional barking because it only legitimizes the likes of Ahmadinejad and convinces NO ONE in the West.
Israel killing Arab children, oh come on guys. Let's be real. Your buddies fired over 10,000 rockets into Israel's south, and 4,200 Katyushas (from Lebanon) into Israel's north.
So when Israel finally responds, there are civilians killed or wounded. As if the US bombing of Japan and Germany during WW2 didn't kill hundreds of thousands ( see fire-bombing of Japanese cities).
When we hit the insurgents in Iraq or Taliban in Afghanistan, no innocents are killed? Sure!
BTW, if you are so concerned about Arab children, hows about telling Hamas to stop the rocket firing into Israel, or the kidnappinbg of Israeli soldiers? Your tears for the Arabs are misplaced. Oh those poor innocent Arabs, and Muslims who brutalized their own people (see Iran).
Israel withdrew totally, except for a boycott of dual purpose products (ie, cement) from the Gaza Strip. It hoped the Pales would use the manufacturing plants left behind. It hoped housing would be built on the 22 settlements. Instead, it got terrorist bases, and cries from the Pales of poverty (while the UN is still funding the Palis with our money).
But I am not naive, nothing that we do, will dissuade Iran from pursuing it's goal of making nuclear weapons and armng their two missiles, capable of hitting Tel Aviv.
The animal in Tehran named Ahmad, has said openly the Holocaust was a hoax designed to facilitate the Jewish state. The annual support for the Palestinians in Iran was held recently..with "Death to Israel" and "Death to the US".
Shibah Missiles have banners afixed.."This year in Jerusalem".
The same old hatreds against the Jews, but with different players. Instead of Egypt and Syia, we now have Iran, Hezbollah (a Syrian surrogagte) and Iranian supported Hamas, ready to Jihad.
Abe Foxman is wrong. The time for action is now..and I don't mean a boycott of companies during business with that despicable country.
A report prepared by a former US general said that within 3 weeks, an all out Israeli strike would eliminate 30m Iranians and 15m Syrians. Iran would cause up to 1m Israeli casualties.
Israel must strike now and not wait. It does not have to fly over Iraq (hear that Zbig), but can send hundreds of F15s and F16s over Southern Turkey. It need only take out 9 Iranian plants, including those making and using centrifuges and 2 uranium mines.
Sooner or later, Israel, the US and the other 5 European nations will have to make a fateful decision. The world is waiting. I am waiting.
Israel has over 400 nukes..high fusion types...what is it waiting for, Hashem?
I think it's time for an embargo on Foxman the ADL, which does not represent many Jews such as myself. Enough is enough of this constant hysteria and paranoia. In addition to everything else, this self-appointed "representative" of the Jewish People would like to see the 35,000 Jews in Iran suffer. And of course the sickos who advocate a military attack are the armchair warriors who want others to put their life on the line. Once Iran is embargoed, Foxman and the rest will also be paying $10 a gallon for gasoline. Do they think that they can force the whole world to obey the Zionist agenda at the point of a gun? And there are plenty of Jews in the borders of the State of Israel who agree with me and not with the armchair warriors in Brooklyn.
Mikey & Richard-I agree with you 100%
An embargo of Iran will worsen relations with Europe. You have been warned.
Who are all these pro Iranian stooges posting here?
The Iranian people have suffered enough under the Islamic dictatorship and those of you who pretend that you for the oppressed should be ashamed of yourself.
Like in the past when you supported the horrible communist countries you now support the Islamic ones.
All, of course, in the name of human rights. Never mind that these regimes have killed millions of people.
Listen, Israel. People Who Live In Glass Houses Should Not Throw Stones.
These are great, encouraging comments.
During the ADL's long march to the right, Foxman intimidated everyone in the Jewish community who disagreed with him into silence.
Now he's calling for another ridiculous foreign policy proposal, and people here are challenging him on it.
If we had a dissident minority who were smart enough to recognize this as nonsense, that would have been enough. But even better, most of the people here see through it.
Iran is no one's probelm other than Israel's.Certainly not America's. Why America should get entangled wih Iran.
Dr>joji Cherian "Iran is no one's probelm other than Israel's.Certainly not America's. Why America should get entangled wih Iran."
The Europeans would disagree and so would the Arab gulf States.
Even if it were "only" Israel's problem just as the Nazis were "only" the problem for the Jews then still they have a right to defend themselves and pro Ahamdinejad Jew haters like Cherian can go jump off a plane without a parachute.
Abe Foxman is the man!
The important thing is that the right wing can't silence us any more.
Some people are posting abuse and insults (as the right wing has always done).
If they had good logical arguments, they would be posting logical arguments. They don't, so they're posting abuse and insults instead.
Just ignore them and speak your mind.
Yes, Just ignore Norman and his ilk and speak your mind.
This is how the left silences Jews:
"In 1952, the last year of Stalin’s life, 15 Soviet Jews, including five prominent Yiddish writers and poets, were secretly tried and convicted of capital offenses, including treason, espionage, and bourgeois nationalism. They were targeted because of their involvement in the Jewish Anti-Fascist Committee and because of their heartfelt response as Jews to Nazi atrocities in occupied Soviet territory.
On the night of August 12, 13 were secretly executed, a date remembered as the “Night of the Murdered Yiddish Poets.”"
http://smoothstone.wordpress.com/2007/08/06/the-night-of-the-murdered-yiddish-poets/
News from the Indymedia portal at the link:
http://piemonte.indymedia.org/article/6178 “U.S. investigation in Genoa "Violated the embargo on Iran"
Thursday, October 29th, 2009 in Genoa, the financial police searched the offices of an Iranian-Italian company specialized in the import-export: it was the crucial step taken on an international letter rogatory in the United States. The suspicion is that, through a system of "triangulation" of trade between countries, unrelated to any "black list" have been violated restrictions imposed after the UN Security Council resolutions on particular types of industrial supplies to Iran. Not fully understood the terms of engagement with the Iranian company based in Genoa, where, however, were acquired documents to be sent to the USA.
Site Indymedia has discovered that years ago the Italian military secret service spied many Iranian society - all controlled by the Iranian government - with operational base in Genoa. The site publishes some confidential SISMI's documents where he reveals the names of some secret agents: Altana Pietro and Renato Raso.