‘Iran could begin feeling a further squeeze on its oil income soon’
Joby Warrick
Washington Post
Jan 20, 2013
Ever since European seaports closed their gates to Iranian oil tankers last summer, Iran has looked to the East to keep its economy afloat. Countries such as China, India and South Korea — some of them critics of Western sanctions — have offered Iran a lifeline of reliable markets and much-needed dollars.

US sanctions: Collective punishment, designed to hurt people like these.
But perhaps not for long. In just over two weeks, the Obama administration will begin enforcing a little-noticed statute that could dry up one of Iran’s largest remaining sources of oil income, U.S. officials say. Beginning Feb. 6, Iran still will get paid for the oil it delivers to Asian markets, from Mumbai to Shanghai to Pusan — only not in cash.
The law, part of a package of sanctions approved last year, requires that foreign governments keep any payments for Iranian oil locked up inside bank accounts in their own territory. Iran can use the money only to buy goods from the local economy, such as wheat or medicine or consumer goods. But it can’t collect hard currency that could boost Iran’s beleaguered economy back home, U.S. officials and analysts say.
Administration officials have been quietly anticipating the impact of the new provisions, which could be the most significant since last summer’s measures targeting Iran’s oil and banking industry. A side benefit, officials say, is the potential impact on Iran’s trading partners, which soon will have a compelling new economic interest in supporting tough sanctions against Iran.
“This is the next big shoe to drop,” said David S. Cohen, the Treasury Department’s undersecretary for terrorism and financial intelligence. “Most of these countries have large trade imbalances with Iran, and now Iran will have to find ways to spend all its oil earnings on their local economies.”
The new policy is coming into effect as the Obama administration is struggling to preserve an increasingly unwieldy coalition of nations supporting the West’s get-tough policies toward the country.
Sanctions, which are intended to force Iran’s leaders to accept restrictions on the country’s nuclear program, already have contributed to a sharp drop in the value of the Iranian currency, which has shed more than half its worth in 12 months. But the policies have spurred protests by several nations as well as human rights groups.
Some critics say the sanctions are primarily harming ordinary Iranians while failing to change the behavior of Iran’s ruling clerics. Other opponents, particularly countries dependent on Iranian oil, have objected because of potential damage to their own economies…
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The Iraq inquiry is not to report before autumn 2013 due to the UK government’s reluctance to release papers showing former British Prime Minister Tony Blair’s conspiracy with ex-US President George Bush in waging an illegal war against the Arab country.
The inquiry chairman Sir John Chilcot said earlier that he will not be ready to publish the reports on the truth of Britain’s involvement in the Iraq war before the middle of 2013, two years behind schedule.
Reg Keys, the father of Lance Corporal Tom Keys, who was killed in Iraq in 2003, and a founder of the campaign group Military Families against the War said the delay was “frustrating”.
“I can understand why Blair and a few others don’t want things to come out because there was deceit behind closed doors. But for me and the other families the delays just keep poking a wound that you’re trying to heal. You try to put things in a box but until this is done and dusted you can’t move on,” he said.
Earlier in June, Sir John wrote to British Prime Minister David Cameron, saying that his ability to publish a “balanced, fair and accurate” report was being hampered by the Cabinet Office, The Stop the War Coalition campaign group reported.
The Inquiry has cost £6.1 million so far. It is estimated that another year of investigation could cost the public an extra £1.4 million.
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A few short decades ago, Martin Luther King spoke of a nation gone mad on war, and of wars at home and abroad as the engine of injustice and poverty in the west. At the time, his words were received uncomfortably by many in the USA – but history proved that he had vision and foresight. His words ring true again today.
So we pose the inevitable question: is justice and ethics progressing in the west, or are we regressing in a global tyranny? You answer is here…
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For the first time ever, the


