Oct 24, 2012

Biting Sanctions

David DolanBy David Dolan

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One of the main foreign policy issues facing the American presidential candidates is what to do about Iran’s ongoing nuclear production program. Republican Mitt Romney has indicated that he would slap even tougher sanctions than the Obama administration has on the rogue Shiite clerical regime, which has governed Iran since the late 1970s.

Economic analysts say the current level of sanctions is proving to be most effective in the area of ocean commerce. They note that most of Iran’s vital consumer products, including food supplies, normally arrive via ship from ports around the world. However they say the number of vessels anchoring at Iran’s seaports has fallen by over half so far this year.


Sanctions Crush Rial's Value

Along with other international sanctions affecting money transfers and foreign business transactions, the squeeze has led the Iranian currency, the Rial, to lose some 50 per cent of its value since last January.

Iran's minister of economic affairs and finance is warning that the West will "pay a price" for imposing sanctions on his country. He added that Turkey and China have replaced Western nations as Iran’s largest trading partners.