Iran Is in No Hurry

It has been for some months that U.S. executive and legislative institutions have been chewing on cutting of oil imports to Iran. With Senate’s bill ratified, the U.S. president is authorized to impose oil sanctions on Iran. However, this is a bonus Mr. Obama may or may not use.

It seems that White House is unwilling to block the way towards diplomacy and dialogue. Chances of rapprochement are higher since both Iran and the United States are aware of the price they have paid during 30 years of freeze in ties. However, all talks in West about attacking or contacting Iran are aimed to keep Iran’s nuclear issue on the table. But in case of Tehran and Washington starting the negotiations the nuclear program will not be the only topic.

Oil Sanctions

Efforts to reduce domestic gasoline consumption have unfortunately failed due to the government’s failure to develop a comprehensive, effective plan. Despite the oil rationing program, no significant cut in consumption of oil can be seen. The ration set does not encourage people to reduce their consumption. The government has not taken steps to sell oil at a real price and has failed in promoting economical use. The government has not event tried to encourage gasoline consumers to use unsubsidized products. That was totally achievable.

These all show that there is no decent plan in the energy section. If things continue as they are today, the oil sanctions will be more effective and could cause serious problems for the Iranian economy. The government had one year to think of effective ways to foil a possible sanction, but it did not grasp this opportunity.

An Undeniable Price

Some analysts believe that a possible gasoline import sanction will not pressure Iran and if a few companies stop selling oil to Iran, brokers are always ready to sell oil products. But Iran imports forty percent of its domestic consumption, which is a significant portion, and with sanctions enforced, even if we can circumvent them through brokers, the price will be definitely higher. Also, due supervisions will be exercised to prevent oil import to Iran. The threat of petroleum import sanction is looming but it seems that the president is in no hurry to react.