Reuters reports: Western sanctions have so far failed to deter Iran from pursuing its nuclear program and their unexpected and unintended side-effects are producing a new collection of challenges.
The expected loss of Iranian crude production has helped push oil prices to levels seen threatening the global economy.
Already Iran’s oil exports appear to have fallen this month by some 300,000 barrels per day (bpd), or 14 percent, the first sizeable drop in shipments this year, according to estimates from industry consultant Petrologistics and an oil company.
Oil rose sharply on the news, with Brent jumping to over $127 a barrel, up almost $4 from the day’s low.
Meanwhile, many Iran-watchers, including some Western officials, worry that far from producing compliance, ratcheting up the economic pressure is making the Islamic Republic more volatile, unpredictable and perhaps dangerous.