Iran And Sanctions

The Lehmann Letter (SM)

There is a great deal of concern regarding rising oil prices. Much of that concern centers on Iran and its nuclear program and our – and Europe’s – fear of a nuclear weapon in Iran’s hand. Military options exist, but other options are having an effect. Sanctions are tightening and applying pressure on Iran to come to the table.

For instance, did you see this article in Saturday’s, February 18, New York Times?

http://www.nytimes.com/2012/02/18/world/middleeast/swift-network-moves-closer-to-expulsion-of-iran.html?_r=1&scp=2&sq=steven%20lee%20myers&st=cse

Here’s an excerpt:

“Yet another potentially crippling sanction against Iran moved a step closer on Friday when the Belgium-based Society for Worldwide Interbank Financial Telecommunication, known as Swift, said in a statement on its Web site that it was “ready to implement sanctions against Iranian financial institutions.

"….The move would essentially choke off Iran’s entire banking system by denying it the main conduit for exchanging crucial financial transaction information with banks in most countries.”

The Wall Street Journal carried a similar article on the same day.

http://online.wsj.com/article/SB10001424052970204059804577229023989829592.html?KEYWORDS=Jay+Solomon

There’s more to sanctions than meets the eye, and probably much that we don’t know.

(To be fully informed visit http://www.beyourowneconomist.com/)

© 2012 Michael B. Lehmann