Post by Admin Tyler on Jan 26, 2006 21:54:55 GMT -5
IRAN CUTS OFF OIL TO US
Price of Oil Shoots Up Following Announcement
ASSOCIATED PRESS- Following US airstrikes against suspected nuclear weapons laboratories, Iranian President Mahmoud Ahmadinejad declared that Iran would impose an oil embargo on the United States and its allies. "Their cars will rot in the streets, and their families will freeze in the cold because they have chosen war against our mighty Republic. Nor will the Americans have enough fuel to drive their massive armaments industry that their President continues to pursue; we will repel any further incursions into our sovereign nation!" The Iranian leader also vowed to embargo any country that attempts to supply the United States with additional oil while the embargo is in effect. "The Americans will come to see how foolish their President's course of action truly was."
The announcement caused the price of oil to skyrocket to over $80 a barrel. Analysts say the price could easily top $100 by the end of the week and would continue to rise. The price to consumers at the pump could also reach $3, $4, or even over $5 some economic analysts predict.
Iran produces nearly 4.2 million barrels of oil every day. This amounts to nearly 5% of the of the daily world oil production. Partners in OPEC say that they would not have enough production capacity to make up for Iran's cessation of oil sales.
Dr. Kenneth Shaw, an expert on Iran at Northwestern University, has a different outlook on the situation. "A complete oil embargo on Iran would cripple if not topple the regime. Oil is the lifeblood of Iran and if they cannot turn a profit, their government will not be able to handle the loss." Shaw added, "However, Americans are going to be hard-pressed to meet the financial burden associated with outrageous gas prices in the meantime, and it is expected that tempers will be short in dealing with this tight economic crunch. This could end up being a repeat of the '73 oil embargo."
Price of Oil Shoots Up Following Announcement
ASSOCIATED PRESS- Following US airstrikes against suspected nuclear weapons laboratories, Iranian President Mahmoud Ahmadinejad declared that Iran would impose an oil embargo on the United States and its allies. "Their cars will rot in the streets, and their families will freeze in the cold because they have chosen war against our mighty Republic. Nor will the Americans have enough fuel to drive their massive armaments industry that their President continues to pursue; we will repel any further incursions into our sovereign nation!" The Iranian leader also vowed to embargo any country that attempts to supply the United States with additional oil while the embargo is in effect. "The Americans will come to see how foolish their President's course of action truly was."
The announcement caused the price of oil to skyrocket to over $80 a barrel. Analysts say the price could easily top $100 by the end of the week and would continue to rise. The price to consumers at the pump could also reach $3, $4, or even over $5 some economic analysts predict.
Iran produces nearly 4.2 million barrels of oil every day. This amounts to nearly 5% of the of the daily world oil production. Partners in OPEC say that they would not have enough production capacity to make up for Iran's cessation of oil sales.
Dr. Kenneth Shaw, an expert on Iran at Northwestern University, has a different outlook on the situation. "A complete oil embargo on Iran would cripple if not topple the regime. Oil is the lifeblood of Iran and if they cannot turn a profit, their government will not be able to handle the loss." Shaw added, "However, Americans are going to be hard-pressed to meet the financial burden associated with outrageous gas prices in the meantime, and it is expected that tempers will be short in dealing with this tight economic crunch. This could end up being a repeat of the '73 oil embargo."