Published Monday, January 30, 2012
May pay in bullion for Iran oil; Dollar under attack
An employee counts some gold bars before he sells them to a customer at a gold shop in Hanoi August 23, 2011. (REUTERS)
Fuelling the bullion’s newfound drive are rumours that India and China, one of the world’s largest oil consumers, are secretly mulling paying in gold for Iranian oil, and bypassing a European Union (EU) oil embargo on Iran, effective from July 1, 2012.
The EU voted last Monday to ban oil imports from Iran. The move came after a defiant Iran announced earlier in January that it had launched a nuclear enrichment programme at a well-protected underground facility near the city of Qom.
Western nations suspect Iran, which is already under numerous international sanctions, of pursuing a secret nuclear weapons programme but Tehran insists it needs nuclear power solely for civilian purposes.
Nevertheless, the new EU sanctions are being seen as a way for the Western world to bring Iran to the negotiations table, but any move by China and India, which together purchase more than one-third of Iran’s oil, to bypass the sanctions will significantly reduce the EU’s negotiating prowess.
India, which has had traditionally friendly relations with Iran and has found a relatively new ally in the US, is in a precarious situation and has reportedly been working at finding a middle ground and strongly urging for a diplomatic solution.
No comments:
Post a Comment