‘SWIFT’ Reaction: Iran May Block Oil Exports (INN) ISRAEL NATIONAL NEWS) By Tzvi Ben Gedalyahu 03/18/12)
INN} ISRAEL NATIONAL NEWS
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Iran may impose a blockade on oil exports that threaten the world’s
economies as a reaction to new unprecedented sanctions, says its
former intelligence minister Ali Fallahian.
Belgium’s Society for Worldwide Interbank Financial Telecommunication
(SWIFT), which handles most international bank transfers, has
eliminated Iran from its services.
The move is a “direct result of international and multilateral action
to intensify financial sanctions against Iran," said SWIFT CEO Lazaro
Campos. The embargo on Iran took effect Saturday and reduces Iran’s
ability to use a secure network to receive payments. It also will
affect Iranians wanting to receive money from relatives outside the
SWIFT’s decision is the harshest sanction placed on Iran in efforts
to force the Islamic Republic to cooperate with United Nations
nuclear inspectors and open up its nuclear facilities for
surveillance to make sure it is not trying to build a nuclear
weapon.The Western sanctions against companies dealing with Iran has
not spread to China and India, but the SWIFT sanctions will make it
harder for them to pay Iran, which has resorted to the barter system
for some purchases.
“If the United States or Europe considers it its right to ignore
international laws to meet its own interests, Iran may also decide to
respond in kind wherever possible,” Fallahian told the government-
controlled PRESS TV.
He said that the West should not underestimate Iran’s ability to
close the Strait of Hormuz, the shipping channel between Iran and
Oman that carries almost all of Iran’s oil exports, which provides a
large amount of the world’s oil.
Economists have said that closing the channel could result in
doubling the price of oil and cause an international recession.
Two factors working against a blockade are the United States and
Saudi Arabia. American officials have said they could remove the
blockade in a matter of weeks, and Saudi Arabia has declared it will
pump more oil to make up for any loss in oil supply resulting from a
Saudi Arabia, like Israel and the United States, is adamantly opposed
to Iran’s reaching nuclear capability and fears Iran’s declared
intentions to dominate the entire Muslim world with an Islamic
empire. (IsraelNationalNews © 2012 03/18/12)
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