Anti-Iranian Sanctions Backfire

When Western Nations Begin To Believe Their Own Propaganda Elementary Principles of Supply and Demand Get Overlooked



by Joshua Blakeney

A Canadian journalist, addressing the latest threats of sanctions against Iran’s oil sector, says that the United States and some European nations seem to be ‘ignorant of the basic principles of supply and demand.’

Press TV has interviewed writer and journalist, Joshua Blakeney, on his view on the recent hike in fuel prices.

Below is an approximate transcription of the interview:

[youtube 5shMFdxbLeQ&list]

Brent Budowsky, a columnist at The Hill Newspaper in Washington, Manouchehr Takin, with the Centre for Global Energy Studies from London and Joshua Blakeney, graduate student at the University of Lethbridge from Calgary, Alberta Discuss the Sanctions on Iran in Relation to the Politics and Economics of Big Oil on Press TV

Press TV: The US has said that in order to stop the possibility of Iran militarizing its nuclear program, sanctions need to be imposed and hence has asked both Europe and China to readjust their oil purchases, amongst some of the countries. Is that logical asking them in essence to embargo themselves?

Blakeney: No, it’s ridiculous and ludicrous. I mean these nations [the US and EU] are constantly championing and extolling the virtues of free-market capitalist economics. These governments in Europe and the United States seem astoundedly ignorant of the basic principles of supply and demand.

There’s a huge demand for Iranian oil and when the US and Europe decide to act in such a hostile way against their national interests and impose sanctions against Iran, Iran will just circumvent them and sell their oil to other consumers on the market.

China is still trading with Iran. India is willing to purchase Iranian oil and even more peripheral countries like Tajikistan are now purchasing Iranian oil. The days where the United States and European countries can push around the indigenous people of Middle East are over.

As I have said on your show previously, we’re living in a multi-polar world, not a uni-polar world now, which I think is really a good thing. We are seeing this expressing itself in Iran’s ability to weather the sanctions being imposed on it.

Vitol, the world’s most significant oil trader has warned of the negative impartations for Western oil companies over these crazed Middle East policies which, as we know, is emerging from the Israeli hard-right. In the 1980’s the Likud Party in Israel formulated the Sharon Doctrine of destabilizing the Middle East, which was a tectonic shift from the traditional U.S. Middle East policy of propping up Middle East leaders and purchasing their oil.

So this destabilization policy, that we are seeing in Syria, is not working with Iran, because Iran is able to defend itself, and is able to stand up to those global hegemons and trade with other countries.

Indeed the EU sanctions were only supposed to be instigated or initiated from July 1, 2012. Yet, Iran says it is not going to trade with 6 EU nation states, so if anything, it’s Iran who is upping the ante, because Iran knows that actually they don’t need to be bossed around anymore by the European states and the US.

It’s interesting that you should mention the quality of oil, because I’m here in Calgary where there’s very dirty Tar Sands Oil, and we’re beginning to see the US shift from purchasing cleaner crude oil to these dirty Tar Sands. Interestingly, in Canada many pro-Israel lobbyists are highly supportive of this project which is environmentally detrimental, because they want to see the US not be reliant on Middle East oil, and Europeans not to be reliant on Middle East oil, and instead purchase this dirty oil from Canada. So this is the reality of the day and I am quite pleased to see that Iran is able to weather this storm.

Ezra Levant has been portraying Canadian Tar Sands oil as "Ethical Oil", arguing that Middle Eastern crude oil is less ethical to purchase. Levant is a staunch supporter of Israel, a nation that would benefit considerably if the U.S. were to import less Middle East oil and more environmentally unsafe Canadian oil

Press TV: Mr. Takin talked about how the market should be the one to be dictating the amount of oil that each country needs. So when I asked him about the winners and losers, he said it was the average people, the consumers, whether in the US or the European countries that are the losers, because they are the ones that are paying the high prices.

Why is it then that the US led the sanctions, which started this leading to Iran’s decision? Do you think that that was a right move in a sense, or as a political tool in order for them to have this exerted on Iran in terms of what they deem the militarization of its nuclear program?

Blakeney: It’s completely irrational. If the US government or British government or European governments were actually interested in their people, they would obviously want to do commercial dealings with Iran. They would have no interest in being hostile towards a prominent country in the world like Iran. But I think it’s important what the other guest mentioned, about the OPEC oil embargo in 1973. This was an important historical event that we have to understand in order to understand what is going on today.

In 1973, the Arab states and the Persian state were able to show the world that they were able to actually have some sway over the US government and this was of course in relation to Israel and the Yom Kippur war at that time. I think that what happened in 1973, was a rude awakening for the Israeli government, and I think since then we’ve seen a policy where Israel has tried to do their very best to de-fund Middle East regimes and weaken and take funds away from Middle East governments so they don’t have the ability to be emboldened and stand up for themselves.

This is highly ironic

So I think, as your guest suggested, this is actually jeopardizing US oil interests significantly, and US oil companies are increasingly upset with what their government is doing which does lead us to the Israeli elephant in the room. The pro-Israeli lobby has been lobbying for a policy for the last 20 or 30 years, which actually runs against the traditional US-Middle East interests. Suncor, a prominent oil company based here in Calgary just withdrew from Syria. How is this destabilization of the Middle East benefiting oil companies? Clearly, it is not.

Norway's state-owned oil company offers an example of a rational approach to distributing oil revenues. Norway's state interventionism differs considerably from the imperialist state interventionism of the U.S. and E.U. towards Iranian oil markets

So I think that we can’t really understand what’s going on in terms of the oil market, unless we understand that this is not actually being motivated by oil companies primarily. This is primarily being motivated by crazed ethnic-nationalist state in the Middle East that is acting like any nationalist ethnic state in a highly irrational and unenlightened manner and I think that’s where politics meets economics. I am not myself a champion of free-market economics, I am for state-owned oil companies. But certainly, this is running against the traditional policy that these governments nominally support, which is free-market economics. This is state intervention in the market, which is quite ironic when we have the whole Cold War of the US telling us that the government is the problem and free-market capitalism is the most optimum way to run economic affairs in the world. This is highly ironic.

Related article:

How Iran Changed The World

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10 Responses to "Anti-Iranian Sanctions Backfire"

  1. bridgetg  February 27, 2012 at 5:02 pm

    The term “Israel Lobby” refers to American citizens who lobby the US government on behalf of Israeli interests, and often put those interests above American law and the American Constitution, not to mention our own interests. For example, the billions of dollars of military aid we GIVE Israel every year is illegal, because it is not legal for the US to provide military aid to a nuclear power. Oops, is that one reason they don’t admit to having 250 (estimated) nuclear warheads?

    Some of our elected officials are part of the Israel Lobby, such as Lieberman, who, had John Kerry been elected, would have been a heartbeat away. Also ex-Senator Russ Feingold, who said last week that if the Israelis attack Iran because they feel it is an “existential threat” he would not condemn them for it. REALLY ?? Feingold condones a first strike against a non-nuclear sovereign country which would draw the US into another protracted, immoral, illegal, war. Whose interests does he put first?

  2. Mayor of NYC USA  February 26, 2012 at 6:47 am

    Top 10 Reasons to Attack Iran Now:

    10) Interest rates are at all time low, best time to finance a new war.
    9) The US military needs to keep our youth gainfully employed, since we outsourced our jobs to China.
    8) Iran has blocked the sale of Persian rugs as a result Chinese counterfeits have flooded the markets.
    7) The USA must find a safe place to dispose of 100,000 old DU shells Iraq has stored all they could.
    6) Japan has proved that nuclear energy is totally unsafe, so we cannot allow another Fukushima!
    5) We must not postpone the inevitable since the road to hell is short.
    4) The Iranians did 911 it wasn’t Saddam Hussein, Bin Laden, Al Qaeda, or 19 Saudis!
    3) Israel is in dire need of Iranian missiles to help it clear the West Bank and Gaza for development.
    2) The Almighty Yahweh ordained it He’s tired of playing second fiddle to Allah.
    1) If we wait till November and Ron Paul wins he won’t let us.

  3. judgment  February 25, 2012 at 7:23 pm

    I can only pose a question to such convoluted situation and explanation. Lets imagine for moment what
    Obama and those European imperial power could do if the decisions they have to make could be handled without having to worry about “upsetting” poor Israel, who has demonstrated to have pretty sharp teeth
    when her interest is not placed first? I can tell you what we might have: A Nuclear free Middle East, Iran without Amedine ja ja who is sufficiently brutal not to worry about “diplomacy'” when replying to Bush and our family of half backed neocon effusive vocabulary of nasty name calling but, strangely, non of them among us has found the bravery to tell Netanyahu where to go…Netanyahu knew exactly what string to pull. And on that I was just thinking that our Congress has been reduced to the biggest illegal money laundry around. How? well so simple one has to think. We give money to Israel, they in turn buy our loyal congress member who in turn will see to it that more money and other goodies will go to Israel….OH MY?
    Sometime one has to put something in a funny way to see how low we have sunk, a shrewd little….Wiesel
    who is trying to outdo his Hero brother,…..well, chew on it. And I don’t want to hear “how complicated it is”
    it certainly is when you can make trillions disappear and not a peep from the Media. It had to come from our Media, Gordon’s angry passion to save this country if we can..

  4. haroldsmith  February 25, 2012 at 8:57 am

    “If the US government or British government or European governments were actually interested in their people, they would obviously want to do commercial dealings with Iran. They would have no interest in being hostile towards a prominent country in the world like Iran.”

    Exactly. Let me spell it out in simple terms: WE have no government. The Jews took it away from us. What we have is a Jew-controlled whorehouse on the Potomac, masquerading as government.

    Think about this: “our” “government” recently passed a law stating that they can have their military pick us up, detain us indefinitely – without charges, without access to a lawyer, etc., without any trappings of due process whatsoever…why, according to “our” “government”, they can even torture and kill us at their whim.

    I submit that if they can “legally” make us “disappear”, then they can “legally” do all manner of lesser evils, right? So what if we have to pay more for gas at a time when may of us struggling to survive. You don’t like it? Would you rather “disappear”? Welcome to our dystopic, Jew-controlled, post-constitutional, wasteland, where there is no such thing as “national interest”…there is only what the Jews want to do. We’re all Palestinians now I’m afraid.

    • Frances Owens  February 25, 2012 at 12:31 pm

      and they recently asked the FAA to let them fly their drones in American skies. I find this extremely disturbing because what I am seeing is these drones are only being used in other country’s skies for surveillance purposes and to target and attack (kill) those they say are terroists.

  5. Cold Wind  February 25, 2012 at 5:18 am

    The USS Liberty is a apt metaphor for what is happening to the US. To stabilize the region and get the oil flowing in a way that everyone benefits (i.e. fair price), the US military needs to impose a nuclear free zone throughout the middle east, starting with Israel. This must be followed up by a steady withdrawal of all US forces from occupied nations and the subsequent closure of bases. Here in the “Homeland”, the Israel Lobby must be politically decimated and power restored to actual American citizens. There is no dancing around the fact that Israel Lobby has systematically undermined the interest of the US and in doing so has committed treason.

    • Frances Owens  February 25, 2012 at 12:28 pm

      As I thought the Israeli lobby was composed of Israeli’s with no American citizenship, can we really call it treason? Perhaps the ones who are guilty of treason are our govt. members who are bowing down to the interests of a foreign lobby who havve tremendous power in our country.

  6. LOB2065  February 25, 2012 at 4:22 am

    I’ve got a great tag line that I am sure will be used in the Middle East in the near future –


  7. DaveE  February 24, 2012 at 9:25 pm

    And don’t forget that the zionists who have been manufacturing this “crisis” for quite some time have pulled their money from the US and invested it in China, India and all the countries that will profit from this. As well as some creative oil futures trading, I’m sure.

    So as usual, the zionists eff us on both sides, coming and going.

  8. LOB2065  February 24, 2012 at 7:52 pm

    Great article. The world is not going to use less oil, and the fear of a shortage of oil was going to obviously drive up the price of oil. The US media has been putting out articles saying that many countries who are large buyers of Iranian oil are going to stop buying their oil and this is pushing the price up. It will probably help send the EU countries into recession again and America will continue to lose many of the 20% of exports that go to the EU so this is negatively effect the US economy and send it into recession as well.

    The reality is that many Asian countries are not going to let the US control the world’s oil supply and many are going to continue buying Irans oil for this reason and they will not be paying for their oil in US dollars.

    A report has been issues in the US recently that say that all 16 US intelligence agency agree that Iran has not interest in obtaining nuclear weapons. For obvious reasons this report has not been broadcast widely in the US.

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