Oil Embargo on Iran: Who Really Gets Hurt?

Who really gets hurt by an oil embargo? Asia. The largest consumers of Ahmadinejad's country's oil are the growing Asian economies of China, Japan, and South Korea. India also buys a significant amount of that oil.

Asia and India consume 50 percent of the world's oil. America consumes 25 percent of the world's oil and only owns 3 percent. Makes sense why America invaded Iraq, right?

Today, the tensions mount as Iran issues a warning to surrounding oil nations to not increase their oil production to facilitate the sanctions already imposed. The U.S. would like China and India to stop getting oil from the sanctioned source. These countries are taking measures to continue their oil supply by talking with neighboring Saudi Arabia in case of an oil embargo.

Obama signed a law on New Year's Eve that essentially prohibits any country doing business with Iran's central bank from doing any financial business with America. America is currently allowing "waivers" to some countries; however, this may end soon.

They seem to have stepped up their nuclear enrichment program. Do you think the urgency is due to the U.S. pressure applied to their economy? There's no other reason other than to carry through on their threats.

If President Obama issues an oil embargo, they have threatened to retaliate on their neighbors supplying the needed oil and they have threatened to block the Straight of Hormuz. The Straight of Hormuz is the path taken by tankers that supply 1/3 of the world's oil. This would grind China and India's economies to a halt. Being a global economy, this would also hurt America.

This addiction to oil is about to hit rock bottom if not for an intervention. How does the world get healthy again WITHOUT oil?

If this comes up in tonight's GOP debate, is Ron Paul going to stand by his claim that Iran is STILL NOT a threat to America?!

Comments: 12

Winston Smith Jan 16, 2012, 2:57pm UTC

We all get hurt. The price of oil will go up for all of us. In the short term, yes Asia will be hurt, but someone will step up and sell to them.

And, if did you notice that China is making a deal with the Canadians. The Obama Regime blocked Keystone for so long that the Canadians are going elsewhere. China also drills 20 miles off the coast of Florida. We don't.

Lets use our oil and that from friendly nations like Canada.

Lora Covrett Jan 16, 2012, 5:28pm UTC

We already import oil from Canada. We get more from them than anyone else.

It's just another media (and or Republican) lie to say that China is drilling off the coast of Florida.

I found one article that says it's completely untrue and all the reasons why from 2010.
http://www.tampabay.com/news/politics/stateroundup/article1085129.ece

And a more recent article that says drilling is starting in November, 2011 by a Spanish company with a Chinese built machine.
http://www.redstate.com/vladimir/2011/09/10/good-news-oil-drilling-off-florida-begins-nov-1-bad-news-its-in-cuba/

And yet another article dated January 13, 2012 states the drilling might start within two more weeks.
http://www.miamiherald.com/2012/01/13/2587909/oil-rig-could-be-off-key-west.html

What's the truth????

Clark V Jan 16, 2012, 11:19pm UTC

The truth is that any well we don’t drill is a well that someone else will have too. We could buy from Canada or someone else who is far less friendly. Obama said this was part of his plan, he said that gas prices will go up. It has increased in price. Obama would like to have us driving coal fired cars in place of oil, to what end? The whole time, China is buying up all the long-term energy that it can and in the end we will pay far more that even Obama expects. Again to what end?

Winston Smith Jan 17, 2012, 9:48am UTC

http://www.npr.org/2011/09/12/140405282/cuban-offshore-drilling-plans-raise-u-s-concerns

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Chris Wiegard Jan 16, 2012, 4:54pm UTC

The nuclear ambitions of Iran are not a good thing for the world. There are only two ways to actually discourage them. One way is though a military attack- obvious problems to that approach. The other way is to inflict economic hardship on Iran. That can be done without bloodshed, but Iran is not going to be happy about it.

The world is interdependent. Inflicting economic hardship on Iran risks suffering a bit ourselves. But what other choice is there if we wish to convince them that it is not worth it?

Lora Covrett Jan 16, 2012, 5:33pm UTC

If we freeze their economy, does that necessarily freeze their nuclear weapons development?
I personally think they have sped up their enrichment program in fear that one of the Republican candidates that has threatened an air strike on them might actually win the election in America. Iran wants to be ready to retaliate against US.

It really makes me mad when I think of how Bush spent up our surplus on oil wars -- and here we sit with no oil still -- and being blackmailed by Iran along with all the other oil dependent countries. If we had spent that money on developing a new energy source, Iran would be powerless against us today.

Chris Wiegard Jan 16, 2012, 6:02pm UTC

Even if we actually were to push plug in electric cars much harder than we do today, it could take decades to wean american transportation off oil. And the House Republicans are now talking about getting rid of the $7500 tax credit for plug in electric cars.

No easy answers.

Clark V Jan 16, 2012, 11:23pm UTC

The chevy volt costs $250,000, the R&D has a long way to go. We will most likely convert our cars to natural gas before we go electric.

Chris Wiegard Jan 17, 2012, 5:07pm UTC

the Chevy Volt costs 41,000 to the consumer. Subtract the tax credit and it then costs 34,000.

natural gas cars are not going to happen. Talk to your gas station operator about how much he wants to put in a natural gas tank. He's not interested.

Chris Wiegard Jan 17, 2012, 5:09pm UTC

I can remember the hype about hydrogen cars a few years back. Don't worry about gas prices, we will by driving hydrogen cars by 2012!!

yeah.....

Lora Covrett Jan 17, 2012, 7:43pm UTC

I have seen buses at the airport that say they are hydrogen powered. Why can't we have hydrogen fueled consumer vehicles?
Apparently some of the buses in Denver are running E85. Although cleaner, I have a vehicle that runs on Flex-Fuel (E85) and I get anywhere from 5 to 8 fewer mpg than with regular gas.

Clark V Jan 17, 2012, 10:17pm UTC

You are not counting all the creadits, count all that the tax payers are on the hook to pay! The Volt is a Joke! See how many power companies want to rewire the grid to handle the load if every one had a Volt in the drive.
http://www.thenewamerican.com/economy/sectors-mainmenu-46/10295-each-chevy-volt-costs-taxpayers-250000

Once you have subtracted all the subsidies for E85, it does not pay to use that eather. Besides lets burn food, now that is a good idea, what about all those poor people in Africa?

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Oil Embargo on Iran: Who Really Gets Hurt?

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