Sanctions against Iran's central bank to take full effect Thursday, June 28th, and a full embargo of Iranian oil from the European Union, July 1st ...

March 31, 2012

U.S. tightens oil sanctions on Iran

Snip ~ The sanctions target Iran's central bank, which the country uses to facilitate its oil trade. They subject any bank, company or government that does business with Iran's central bank to U.S. sanctions.

In effect, it forces people to choose between doing business with Iran and doing business with the United States.

The sanctions are slated to take full effect June 28, and a full embargo of Iranian oil from the European Union is set for July 1.

The sanctions had already begun ramping up, and analysts estimate Iranian's exports dropped by about 300,000 barrels a day over the last few months.

Analysts cite that disruption, along with the potential for a full-blown conflict with Iran, as the main reason behind a 20% spike in oil and gasoline prices this year.

Inside Iran the sanctions have been taking a toll. Rampant inflation is underway as the nation's currency devalues. There are reports Iranians are having hard time getting all manner of imported goods, including food.

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