European embargo of Iranian oil may be delayed by six months, according to a source with knowledge of the private talks on the matter, Bloomberg news agency reported today. The euro block would defer the embargo to give additional time to countries such as Greece, Italy and Spain to find alternative supply. Iran is the second largest producer of oil in the OPEC.
Though the talks are still ongoing, there might also be a possible waiver for Italy so that sale of crude oil may be used to pay off the debts of Eni SpA, according to the official. All 27 Eurozone countries need to agree to the sanctions for them to take effect. Iran pumped 3.58 million barrels of oil a day last month.
There will be a review of the sanctions after 3 months to assess the impact on crude prices, and to see if countries dependent of Iranian oil are able to get by with supplies from other countries. France, Germany and the UK have been pushing for sanctions on Iran. They allege that Iran has been trying to develop â€˜nuclear capabilityâ€™ that is, the capability to build a nuclear weapon. Even though there is agreement that Iran is not at present seeking to make a nuclear bomb.
There are currently no plans on the table to compensate countries that face difficulties after Iranian oil dries up.
The embargo on Iranian oil is the latest attempt by the west to make Iran submit to Western priorities in the middle east. It is a policy that they have successfully followed after the OPEC stopped oil supplies, and after the six day war. The West does not want an alternative power system to develop in the energy rich middle east. In pursuant to that goal, it has been waging a silent war against Iran, and its attempts to develop self-sufficiency.
One of the things that Iran wants to do is develop its own nuclear reactors so is it self-sufficient in the field of nuclear technology. The west fears that a mastery of that nature would give the keys to building a nuclear weapon to Iran and this might tilt the balance of power in the middle east, as the west will then no longer be able to bomb it into submission.