U.S. Tightens Oil Sanctions on Iran
March 30th, 2012
02:58 PM ET

U.S. Tightens Oil Sanctions on Iran

NEW YORK (CNNMoney) - President Obama ratcheted up the pressure on Iran Friday, deciding to implement previously announced sanctions that will be the toughest to date.

The decision declares that world oil markets can be adequately supplied even if a significant portion of Iran's 2.2 million barrels a day in oil exports is taken off the table.

"There is a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions," Obama said in a statement.

The sanctions, announced late last year, are aimed at getting Iran to give up its nuclear program - a program Iran says is for peaceful purposes but many suspect is intended to produce a bomb.

The decision was widely expected.

"It's hard to imagine the White House would have invited the political ramifications of stalling on Iran," said Kevin Book, managing director at ClearView Energy Partners. That could have been "devastating for key voter blocs in battleground states."

The sanctions target Iran's central bank, which the country uses to facilitate its oil trade. They subject any bank, company or government that does business with Iran's central bank to U.S. sanctions.

In effect, it forces people to choose between doing business with Iran and doing business with the United States.

The sanctions are slated to take full effect June 28, and a full embargo of Iranian oil from the European Union is set for July 1.

The sanctions had already begun ramping up, and analysts estimate Iranian's exports dropped by about 300,000 barrels a day over the last few months.

Read more over at CNN Money.

Topics: Gas prices • Iran • President Obama

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soundoff (9 Responses)
  1. The-Least-Unelectable

    Another bad news for the GOP.

    I will support Mitt Rmoney's WAR mongering on two conditions:

    1. The sons of Rmoney will join the military.

    2. The war will be funded from Rmoney's accounts in Cayman Islands.

    March 30, 2012 at 3:41 pm |
  2. drivenbyambition

    These tighter sanctions, will cause food to rise. Stock now!

    March 30, 2012 at 4:15 pm |
  3. Paleeze

    The GOP has only on way to deal with Iran and that is turn on the war machine! Let’s give this a chance before we start killing people.

    Good work President Obama

    March 30, 2012 at 4:45 pm |
  4. Howard's Daddy

    This is going to be interesting. A game of high-stakes chicken against China and India over Iranian oil.

    March 30, 2012 at 6:10 pm |
    • Howard


      March 30, 2012 at 8:42 pm |
      • Howard's Daddy

        If he could only place sanctions on the Tea Party. It would do the American people a great service. A change we can all appreciate.

        March 31, 2012 at 10:24 am |
  5. Sponge-Bob

    Expect oil to keep going up. We have no choice in these sanctions, I just hope they work and the Iranian citizens finally realize their government isn't looking out for them.

    March 30, 2012 at 6:25 pm |
  6. george of the jungle

    The president has the right idea now if the repos will stop whining and act like they have a pair maybe this will work. Anything short of war is worth a try. And we need to do what we can . This president is tough. Obama 2012

    March 31, 2012 at 11:12 am |
  7. david

    Stop supporting Israeli aggression.

    Research israels crimes against humanity.

    Remember the white phosphorus.

    April 2, 2012 at 2:28 am |