Previewing the Effects of Sanctions
June 28, 2012 | Edited by Benjamin Loehrke and Leah Fae Cochran
Next round - Western governments are preparing to implement the next round of sanctions on Iran, designed to slow Iranian oil trade. Sanctions include a complete oil embargo by the European Union (taking effect on Sunday), as well as ban on insurance for tankers carrying Iranian oil. The sanctions are expected to cost Iran about $4 billion a month and slashing their oil sales by half, according to the LA Times.
--”Because of sanctions already in place, inflation is running about 60% annually, some economists say, and prices of some household commodities and foods, including bread and chicken, have risen by nearly a third in the last two weeks alone.” Read the full-story here. http://lat.ms/MAzNRv
MEADS - Secretary of Defense Leon Panetta is urging Senate appropriators to preserve $400 million for the Medium Extended Air Defense System (MEADS). The other 3 defense committees canned the program, citing its repeated cost overruns and schedule delays.
--FY13 was to be the last year for funding MEADS. Sec. Panetta argues that the MEADS funding should be preserved, allowing the army to harvest radar technologies from the system and keep faith with MEADS partner countries Germany and Italy. Tony Capaccio at Bloomberg has the story. http://bloom.bg/LTcr9f
Fact Sheet - ”Statements Against Military Action in Iran” from military, intelligence, government, IAEA and expert officials.
--From the Center for Arms Control and Non-proliferation:http://bit.ly/MDBEUg
Just in case - Saudi Arabia has refurbished a Saddam-era oil pipeline to pump additional to Red Sea ports, in case Iran makes good on its threats to block the Strait of Hormuz. More than a third of the world’s seaborne oil passes through the narrow strait. The refurbished pipeline would move about 1.6 million barrels a day. Reuters has the story.http://reut.rs/M7VSJT
Hardened position in Moscow - In the Moscow talks on June 18-19, Iran is reported to have come ready to discuss stopping enriching uranium to 20%. The P5+1, however, held to the position that Iran had to meet all 3 conditions of their proposal: stopping 20%, shipping out stockpiles of 20%, and closing Fordo.
--This lead some observers to see that the U.S. hardened its negotiating position, relative to previous talks in Baghdad and Istanbul. Laura Rozen and Barbara Slavin at Al Monitor have the story. http://bit.ly/Oz4GJ9
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