US puts economic squeeze on Iran
By Jon Leyne
Tehran correspondent, BBC News, reporting from London
As pressure grows on Iran over its nuclear programme, there is evidence that behind the scenes, the United States has stepped up its push to isolate Tehran economically.
In recent weeks a number of countries and companies have cut back on their imports of Iranian crude oil. They include some of Iran's most important trading partners: China, Japan and India.
At the same time more companies have stopped supplying Iran with refined petroleum. Because of a shortage of refining capacity, Iran relies on such imports to meet domestic demand.
The move was explained in unusually blunt terms this week by a senior US official.
William Burns, US Under-Secretary of State, told a Congressional committee: "What we've been doing is to try to use every lever that we already have at our disposal to encourage foreign companies, foreign entities to cut their ties with the Iranian economy."
"The squeeze is on," said Kate Dorian, Dubai bureau chief for the energy analysts Platts. "Very few people are willing to deal with Iran directly."
.
Dependence
Iran's dependence on imported petroleum has often been identified as one of its weaknesses. Iranians love their cars, and when petrol rationing was introduced in the summer of 2007, there was violence on the streets.
The US congress has been pressing President Obama to introduce sanctions on petrol exports to Iran. So far Mr Obama has been reluctant to go ahead, at least with any formal measure.
Some analysts point out that Iran has alternative suppliers who can fill the gaps. The analysts PFC say that Turkmenistan, Venezuela, Kuwait and Malaysia have all been willing to make up the shortfall.
A Chinese tanker this week was reported to be preparing to carry a major shipment of petrol to Iran. And Total of France is also still selling petrol to Iran.
unrest to Tehran in 2007
Total's CEO has said that his company has received "indirect" messages from Washington about such sales, though not a direct request to stop.
At the very least, though, the pressure means Iran may have to pay a premium for its petrol imports, even if they can be re-sourced through flags of convenience.
The pressure on Iran is an interesting study in how the United States uses its economic might to leverage political influence.
Lukoil, for example, although it is a Russia company, also has major US shareholders, and a chain of petrol stations in the United States. Reliance of India also has significant interests in America as well.