Joe Yurkin Comments on the Effects of Oil Sanctions Against Iran
Online, July 24, 2012 (Newswire.com) - The United States has recently spared China and Singapore from the economic damage that sanctions over oil imports from Iran would have caused. Although these countries are still importing oil from Iran, MSNBC reports that Secretary of State Hillary Rodham Clinton has granted them six more months without the repercussions that such sanctions would create. Joe Yurkin believes that this pardon, of sorts, perfectly illustrates the power that sanctions hold.
MSNBC explains that the United States and other western countries believe Iran to be developing nuclear weapons. Although Iran has stated that its nuclear activities are "for peaceful purposes," the United States has threatened sanctions against countries that continue to import oil from the country.
While sanctions are typically used as a punishment, Clinton's actions have demonstrated how they can be withheld in a way that rewards good behavior, for lack of a better term. Although China and Singapore are still importing oil from Iran, they have made an effort to cut back. And they are not the only countries that Clinton has waived so far.
"Secretary of State Hillary Rodham Clinton commended the two Asian countries for 'significantly' reducing the oil purchases. Eighteen other governments have received similar waivers designed to pressure Iran to curb its nuclear program by choking off its oil revenues," the article reports.
These sanctions are powerful because of the damage they could do to Iran's economy; damage that western countries hope will encourage Iran to cease its nuclear activities. Exports of crude oil have decreased from 2.5 to 1.5 million barrels per day since 2011, which means that the country has lost an estimated eight billion dollars each quarter, reports the article. This demonstrates the power that these sanctions hold on a global scale.
"The countries that control the oil have the best economies," commented Joe Yurkin. "While Iran has the oil, the United States and other countries are essentially controlling it through these sanctions. It will be interesting to see how this plays out on the global stage, as it has the potential to drastically affect the economies of many countries-as well as the dynamic of the industry as a whole."
ABOUT:
Joe Yurkin Owner and President of Pacific-Northwestern Energy, is an expert within the oil and natural gas industry. In addition to his business endeavors within this global industry, Joe Yurkin trains and manages boxers, both professional and amateur. Among his clients is the noteworthy Marvin McGowan, who is a Junior Olympic Boxing Champion. Aside from these accomplishments, Joe Yurkin has also founded The Sports Complex Boxing Club in an effort to assist young boxers in learning more about the sport and training to reach their goals.