Trapping Iran’s Petro-Dollars

Trapping Iran’s Petro-Dollars

from The Diplomat by J. Berkshire Miller

Last month I wrote about Japan’s push to forge new energy ties with the key South American trading bloc, the Common Market of the South (MERCOSUR). Of the many factors influencing Japan’s energy security decisions – including Fukushima and the Arab Spring – one of the most important is the set of UN Security Council sanctions over Iran’s nuclear programme, which continue to inhibit the smooth flow of crude from Tehran to Tokyo.  It seems that Japan isn’t alone in this regard. Strong sanctions against Iran have effectively trapped billions of dollars of the country’s oil revenues in various banks across the world. South Korea is another energy-hungry country in Asia that depends on its ability to export its products overseas. Seoul relies on Iranian crude for nearly 10 percent of its oil imports. According to a Reuters report last week, South Korean government officials have indicated that Korean banks have almost ... Read More...