iran willing to use oil as a political tool

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Page 1: Iran Willing to Use Oil as a Political Tool

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Iran: Willing to use oil as a political tool

Rafael Henriquez Junaid Saleh-Esa

Put up the notes you took while Iwas gone

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Video

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Background

Iran is developing a nuclear program the rest of the worldperceives as a threat. International Atomic Agency has sanctioned and condoned

expansion of the program. Iran, in response, is using its oil resources as a negotiatingpoint with the rest of the world. The global community is sure that with the Eurozone debtcrisis, the issue in question could mean disaster for economiesaround the world. 

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Geography of Iran in Relevance toOil Embargo Issue

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Iran's Perspective

States that it's nuclear programs are used for the basis forpeace.

Hasn't explicitly said that it would do anything with the Strait of

Homuz. Leaders have stated that Iran "would be willing to use oil as apolitical tool." Is more dependent on the Strait of Homuz for exports/importsthan any other country.

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International perspective

By cutting off oil, Iran hurts itself economically and introduces apossibility of war against it. If enough economic harm is done, countries will take action to

protect their economic value and assets. Saudi Arabia has built a pipeline to provide an alternativesolution to Iran's objection. However this won't be able to takeon the capacity of Iran's pipelines. 

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IAEA Nuclear Report on Iran

Possible Military Dimensions 43. The information indicates that Iran has carried out the following activities thatare relevant to the development of a nuclear explosive device:

• Efforts, some successful, to procure nuclear related and dual use equipmentand materials by military related individuals and entities (Annex, Sections C.1 and

C.2);• Efforts to develop undeclared pathways for the production of nuclear material(Annex,Section C.3);

• The acquisition of nuclear weapons development information anddocumentation from a clandestine nuclear supply network (Annex, Section C.4);and

• Work on the development of an indigenous design of a nuclear weaponincluding the testing ofcomponents (Annex, Sections C.5 –C.12). http://iaea.org/Publications/Documents/Board/2011/gov2011-65.pdf

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Credibility of Nuclear Program

-The Agency has received over a thousand pages of studiesdocumentation. The information reflected in that documentationis of a scientific nature. -The Agency has also had several meetings with the MemberState to clarify information provided, to question the MemberState about the forensics it had carried out on thedocumentation and the information reflected in it, and toobtain more information on the underlying sources. -Iran has followed IAEA procedure with the publication ofstudies and research.

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Previous Tensions with Iran and theWest-Iran recently captured a surveillance drone from the US. -However, US hasn't admitted to spying on the Iran-Iraq region. -Iran claims the drone was an "act of aggression", and voiced acomplaint to the UN. -Ahmadinejad refuses to give the drone back to the US; iscurrently in the process of decoding it. -Iran has no formal diplomatic relations with the United States,communication occurs through a Swiss embassy. -Iran has used its oil resources to the detriment of the UnitedStates in the past. 

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Confirmation of United Statessurveillance drone

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Questions1. Is the use of oil a powerful political tool for Iran? Is it an

effective way of protecting other items on their agenda? 2. Does Iraq harm itself with this behavior? 3. How would the use of oil affect Iran's relations with other oil

dependent countries? 4. How much influence do you think a country's resources

have in regards to other countries? Iran's? 5. How do you think the International Community wouldrespond if Iran did start to place control on oil? 

6. How would OPEC (Organization of Petrol ExportingCountries) respond to Iran's oil control? 

7. Can and would Iran cause an oil crisis similar to the one in1973? 

8. What stance would the United Kingdom take?9. Are there any countries that would not be affected?

10.What do you think will ultimately happen? 

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Questions Cont.

11. Does the United Nations have some sovereignty overIran?If so, should it? 12. To what extent is this a big issue?