EU Sanctions on Iran

Just today, it was announced that the European Union adopted an oil embargo against Iran and froze the assets of the Iranian central bank. By doing so, the EU is trying to pressure Iran to consider further negotiation on its nuclear program. The latest sanctions will immediately place an embargo on any new contracts, while the existing contracts will be in effect until July.

The EU wants to show Iran that Iran’s development of nuclear weapons is heavily discouraged by the international community, and that the community is willing to have talks with Iran on its nuclear program.

There is one problem that the EU must face: Greece, one of the EU members in dire financial crisis, depends a lot on cheap Iranian oil. The EU foreign ministers claimed that they will make up the costs that will impact Greece due to the embargo — but have not exactly specified how.

Sometimes, economic sanctions only bring a series of further conflict and predicaments. They can even backfire on the region or the group that initiated them. With Iran being one of the biggest exporters of oil to the Western country, how will the latest oil embargo impact the world?

The EU is firm on the belief that this is mainly for the security of the world – but they need to realize the economic consequences this may bring, especially to one of its very own members, Greece.

http://www.cnn.com/2012/01/23/world/europe/iran-eu-oil/index.html?eref=mrss_igoogle_cnn