The Iranian regime has entered a cycle of economic strangulation as a result of its desire to destabilize the world and threaten it with the development of nuclear weapons. What is the benefit of having an atomic bomb when the country is on the brink of collapse because of the destruction of the economy of the second biggest exporter of oil in OPEC? The European sanctions on Iranian oil imports by the European Union beginning 1 July mean that Europe will forego 600,000 barrels a day. European refineries have already begun finding alternative quantities and have gradually reduced their purchases from Iran, so that these will end completely in July. The sanctions on the transport of Iranian oil are also significant. Most of the tankers that transport Iranian oil are not European, which means that Asian tankers will not be able to bring the good to Europe. The measures by the United States, and the ones begun by Europe, to prevent companies from dealing with Iran's Central Bank have made Japan and South Korea reduce their purchases of Iranian oil by about 20 percent, even if they have not announced this. However, observers of developments on the oil market have noticed that Japan and South Korea have brought down their purchases by more than 20 percent, with some saying that the reduction is actually around 40 percent. China has reduced its purchases by 200,000 barrels a day, on the pretext of a dispute over prices, while publicly, it says it opposes sanctions. But this has allowed China to bring down the price of Iranian oil for the country, as well as its level of purchases. The important thing is that despite these tough sanctions on Iran, the price of oil has not risen substantially in international oil markets, which have enough supply. The price rose by one dollar and then dropped again. Oil market brokers are not anxious about a shortfall, because the supplies are there. Saudi Arabia currently produces 9.8 million barrels a day and the country's oil minister, Ali Nuaymi, has said that his country is ready immediately to raise its production to 11 million barrels a day, so that there is no shortfall in markets. However, there is no need at present for this, because supply is abundant and demand is sufficiently secured. Iran now faces a poor economic and financial situation, after the Rial lost 25 percent of its value against the dollar. Iranians cannot increase their exports and buy the goods they need, because of currency fluctuations. The Iranian regime now has two options. Either it halts the enrichment of uranium to arrive at an atomic bomb, or it will destroy its country and economy and impoverish its people, and destabilize the region more than it already is, for the sake of empty megalomania that will end badly, as it did with Iran's enemy, Saddam Hussein. As Iran loses 40 percent of its oil exports, the Iranian leadership should reassess its policies and aspirations to exercise hegemony throughout the region. It should halt its support for repressive forces such as Syria, which is also on the brink of political and economic disaster. There is no salvation except through the disappearance of these two regimes, because they a source of catastrophes for their peoples, and for the entire region.
