• Thu. Nov 21st, 2024

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    U.S. Oil Sanction against Iran –Now Beneficial to Russia

    The US has long had a history of tension with the Iranians. This all started as a result of the storming of the American Embassy in Tehran by a group of Iranian students, precisely 4th November, 1979. This storm ended in taking hostage of over 60 citizens of the United States, and thus sparked an international crisis – between US and Iran. This hostage crisis has lasted for a long time, and was characterized by series of sanctions concerning negotiations between the two countries. Particularly, Jimmy Carter, the then president cut off all the sales of the Iranian oil and freeze all Iranian assets. These actions were aimed at achieving a diplomatic negotiations for the release of the hostage by the Iranian government – but to no avail.

     

    As the negotiations proved fruitless, more drastic measures were introduced by the US government: all diplomatic relations with Iran were completely cut off; economic sanctions were imposed such as cutting off food aid, closing every Iranian institution within the country and placing an embargo on all Iran imports. President Carter did all he thought necessary, but the hostage crisis continued as the Iran government were nonresponsive. The hostage crisis only came to an end when a new administration took over US government, particularly during the tenure of President Reagan. The Iranians released the hostages on the note that the United State would revoke all sanctions by the then president Carter. Even though this was not immediately done by the US government, eventually they intend to.

     

    However, series of happenings after that triggered a further sanction by US on Iran. This was following a truck bomb attack that claimed the lives of 241 service members of the United State. It was believed that the Iran were partly behind this – during their war with Iran. All attempts to ease the tension between these two countries have proved abortive. Instead the tension kept growing worse as series of happenings kept developing as the day went by. Finally, during the administration of Obama, there was a success in lifting up the sanctions. This was particularly in exchange for the nuclear program Iran was involved in.

     

    However, shortly into the administration of the next president Donald Trump, the nuclear deal was cancelled. This obviously meant the re-awakening of the sanctions against the Iran. This time around, the Russian government officials and energy oligarchs are pleasurably rubbing their hands. Iran and Russia have been allies for some time and now having a common adversary will enhance their alliance. It is expected that the sanction on Iran will (particularly against their petroleum industry) will translate to a propelled Russian economy. Just recently, Russia has increased its oil production to an unimaginable level, thereby raising its stock market value to a high and still counting.More allies are gradually joining force with Russia to circumvent and sidestep US sanctions against Iran.

     

    Image Credit: jpost.com

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