Currently Iran is the subject of some very severe economic sanctions, with the main goal of deterring Iran from nuclear weapons. Many sources indicate that these sanctions have had a strong impact on Iran's economy. Daily News Egypt reported that due to sanctions from international community, oil exports fell by half, Iraqi oil exports overtook Iran’s for the first time since the 1980s and the Iranian rial fell by a record low to the US dollar in September 2012. The article also reported high levels of inflation, at the end of 2012 Iran's inflation rate was reported at 27%, although some reports suggest the level to be twice that, the price of food went up 60% in 2012 according to official figures, although some also find that figure low.
Most sources would agree the sanctions on Iran have worked, but is this the time to loosen these sanctions? Some argue it is, saying it is causing extreme damage to the average Iranian. That may be the case but can we allow Iran to gain nuclear weapons. News sources have recently been reporting on the talks between the U.S and Iran, in regards to reduced sanctions in exchange for promises from Iran that they will not continue working toward nuclear weapons. Many people see the new Iranian president as someone who can bridge the gap between the U.S and Iran, i'm not so optimistic.
It was a little more than a year ago that Israel's PM Benjamin Netanyahu warned the U.N assembly that Iran would be close to nuclear weapons in a year. I fear Iran could be presenting a friendly face, in the hopes of having sanctions lowered allowing the final stages of the nuclear process to be completed. The USA Today reported yesterday that "Netanyahu reminded U.S. Secretary of State John Kerry, who is visiting
Israel, the West Bank and Jordan this week, of "Death to America" chants
in Tehran on Monday, when the 34th anniversary of the Iran hostage
crisis was celebrated."
I believe there is still strong anti U.S views in Iran and i feel we need to be cautious of the sudden change in attitude from the Iranian government. However this is just my opinion, what do you guys think?
I have no problem with loosing sanctions and letting Iran possibly attain a nuclear weapon. A peaceful policy and diplomacy is the way to go about handling Iran. No one likes the world police, but everyone likes a friend. If the United States ends the sanctions and becomes friends with Iran, then they might not have an incentive to use a nuclear weapon. I also want to acknowledge the fact that we also hurt by placing sanctions on Iran as we learned a few chapters ago. I also find it very interesting that Iraq is now the leader in oil exports. Was that Bush and Cheney’s plan all along? I don’t know? Maybe it is my general distrust of the government, but I think that is slightly fishy.
ReplyDeleteI think that having the trade sanctions is not necessarily a bad thing. This is because when the country is doing what we do not want them too it is a useful tool to have. This can help control their economy and make sure that they do not obtain nuclear weapons.
ReplyDeleteIn fact, Iran still exports oil to the other countries and really at very low cost to avoid a huge sanction brought by the UN through US. We all know that, Oil is a valuable commodity, and we know that despite the OPEC rules but still countries cheat against the OPEC cartel to control prices, the amount to produce. Therefore, with such sanctions being imposed on Iran, and with the attempt to threaten the World on nuclear, but also Iran might play a cheating on cartel form. Moreover, as we limit also the Oil from Iran, we also decrease supply of Oil in the market and this happened during Gulf war when Oil prices skyrocketed in those countries which have Oil reserve in their stocks. So, with reduction of Oil supply in the market while demand is high, there is an incentive to cartel on this business. Moreover, the case of Iran should be dealt in political and diplomatic ways because if it is dealt in economic sanctions while Iran has an advantage having a valuable commodity will continue a clear view of arrogance because it still makes friends who want cheap Oil through cartel, and ignore those with strict economic sanctions.
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