Who really gets hurt by an oil embargo? Asia. The largest consumers of Ahmadinejad’s country’s oil are the growing Asian economies of China, Japan, and South Korea. India also buys a significant amount of that oil.
Asia and India consume 50 percent of the world’s oil. America consumes 25 percent of the world’s oil and only owns 3 percent. Makes sense why America invaded Iraq, right?
Today, the tensions mount as Iran issues a warning to surrounding oil nations to not increase their oil production to facilitate the sanctions already imposed. The U.S. would like China and India to stop getting oil from the sanctioned source. These countries are taking measures to continue their oil supply by talking with neighboring Saudi Arabia in case of an oil embargo.
Obama signed a law on New Year’s Eve that essentially prohibits any country doing business with Iran’s central bank from doing any financial business with America. America is currently allowing “waivers” to some countries; however, this may end soon.
They seem to have stepped up their nuclear enrichment program. Do you think the urgency is due to the U.S. pressure applied to their economy? There’s no other reason other than to carry through on their threats.
If President Obama issues an oil embargo, they have threatened to retaliate on their neighbors supplying the needed oil and they have threatened to block the Straight of Hormuz. The Straight of Hormuz is the path taken by tankers that supply 1/3 of the world’s oil. This would grind China and India’s economies to a halt. Being a global economy, this would also hurt America.
This addiction to oil is about to hit rock bottom if not for an intervention. How does the world get healthy again WITHOUT oil?
If this comes up in tonight’s GOP debate, is Ron Paul going to stand by his claim that Iran is STILL NOT a threat to America?!