Embargo

From Holden:

On Friday I noticed that Scottie did not want to answer this question.

Q Scott, did the administration have concerns about the potential economic impact of the removal of Iranian oil from the world market?

Understandably.

OPEC power Iran wields a potent weapon — oil — which if fired to ward off international pressure over its nuclear programme could blast prices to record levels last seen during the 1979 Iranian Revolution.

Emboldened by strong prices and stretched global supplies, Tehran could retaliate by removing all or part of its daily crude sales of 2.4 million barrels from thirsty world markets.

[snip]

“Iran is in a very strong position and Ahmadinejad knows it. It’s a sellers’ market,” said independent oil consultant Geoff Pyne. “And the West doesn’t have a choice — it needs the oil.”

[snip]

“The question is whether Iran will take the initiative and cut off its oil, even for weeks or a month?” said Mustafa Alani, an analyst at Dubai-based Gulf Research Center.

“The Iranians can play with the psychology of the market even by threatening to cut off their oil.”