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Iran into Trouble
Saudis and Sanctions Suffocate Iran

The crash in oil, combined with preexisting sanctions, is starting to hit the Iranian economy where it hurts. The Financial Times reports:

Importers of basic commodities in Iran say they are struggling with delays in receiving hard currency from the central bank, caused by the impact of falling oil prices and international sanctions over the country’s nuclear programme.

“Tens of ships are now waiting in Bandar Abbas [the main port city in southern Iran], sometimes for several weeks, and refuse to discharge cargoes until they are paid,” said one importer of essential goods.

The currency crunch comes from a combination of the restrictions that the sanctions and the interim agreement put on Tehran’s use of foreign banks, and the lack of trust in Iranian credit that has arisen from the oil crash. The economic warfare, it seems, is working—and gaining much-needed leverage for the ongoing nuclear negotiations.

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  • Kevin

    Now is the time for the U.S. to strengthen sanctions, as bipartisan coalitions in the Senate want. Closer vidible coordinatiion with the Sunni Arab powers woukd also strengthen the U.S. bargaining position. Obama’s instinct to placate enemies prior to negotiations does him no favors as far as actually reaching a deal. (I continue to think this is largely incompetence and a flawed view of how the real works works rather than animus towards the US on his part – but the evidence to support my view here grows weaker over time.)

    • rheddles

      How about animus toward the US on ValJar’s part?

      • f1b0nacc1

        It could easily be (and like is) both you know.

  • Josephbleau

    Is Iran not also sanctioned by Allah by the fact that he has not increased their fold of Pu.

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