1741. Fuelling confrontation: Iran, the US and the oil weapon
- Author:
- Anthony Bubalo, Mark P Thirlwell, and Dr. Michael Fullilove
- Publication Date:
- 05-2006
- Content Type:
- Working Paper
- Institution:
- Lowy Institute for International Policy
- Abstract:
- The Iranian nuclear issue has entered a critical phase. A draft UN Security Council resolution has been circulated that could pave the way for political and economic sanctions. Should these fail to change Iran's position, the likelihood of military action will grow towards the end of 2006 and into 2007. At the same time, high oil prices have bolstered Iran's ability to defy demands that it give up uranium enrichment and provide greater transparency with respect to its nuclear program. Given current supply, demand and price indicators, oil provides Iran with a very potent weapon with which to respond to punitive measures. However, the economic and political fallout produced by the use of the oil in this way makes it likely Tehran would use such a weapon cautiously.
- Topic:
- International Relations, Energy Policy, and Nuclear Weapons
- Political Geography:
- United States, Iran, Middle East, and Australia/Pacific