Reversing the oil weapon

In the wake of North Korea’s nuclear test, Ayatollah Khamenei reiterated Iran’s right to continue developing its own nuclear program. Here’s a radical idea. If the world was really interested in countering Tehran’s nuclear ambitions, maybe it should go after its sector most vulnerable to foreign investment: oil. Last week negotations between the Iranian oil ministry ...

In the wake of North Korea's nuclear test, Ayatollah Khamenei reiterated Iran's right to continue developing its own nuclear program. Here's a radical idea. If the world was really interested in countering Tehran's nuclear ambitions, maybe it should go after its sector most vulnerable to foreign investment: oil. Last week negotations between the Iranian oil ministry and the Japanese company Inpex to jointly develop the Azedegan oil field  failed, prompting reports that Inpex would be limited to a 10 percent stake. Then, over the weekend, Iranian oil minister Kazem Vaziri-Hamaneh hinted that Inpex, which is nearly 30 percent owned by the Japanese government, might be permitted its original 75 pecent stake, under certain conditions. He placed the onus on the company to solve "its domestic problems."

In the wake of North Korea’s nuclear test, Ayatollah Khamenei reiterated Iran’s right to continue developing its own nuclear program. Here’s a radical idea. If the world was really interested in countering Tehran’s nuclear ambitions, maybe it should go after its sector most vulnerable to foreign investment: oil. Last week negotations between the Iranian oil ministry and the Japanese company Inpex to jointly develop the Azedegan oil field  failed, prompting reports that Inpex would be limited to a 10 percent stake. Then, over the weekend, Iranian oil minister Kazem Vaziri-Hamaneh hinted that Inpex, which is nearly 30 percent owned by the Japanese government, might be permitted its original 75 pecent stake, under certain conditions. He placed the onus on the company to solve “its domestic problems.”

The thing is, Iran can’t increase (or perhaps even maintain) current levels of oil production without foreign assistance. Petro-dollars sustain the Iranian economy, nuclear development included. So call me crazy, but maybe the United States should call for a worldwide ban on all petroleum products from Iran. Sure, prices at the pump will skyrocket, but the Iranian nuclear program would be stopped cold. It may just be the shock the world needs to spur the serious development of alternative sources of energy.   

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