Western sanctions could seriously effect Iran's oil trade Tehran's threat comes at a time when sanctions are having an unprecedented impact on its economy, and the country faces political uncertainty with an election in March, its first since a 2009 vote that triggered countrywide demonstrations.The West has imposed the increasingly tight sanctions over Iran's nuclear program, which Tehran says is strictly peaceful but Western countries believe aims to build an atomic bomb.After years of sanctions that had little impact, the latest measures are the first that could have a serious effect on Iran's oil trade, 60 percent of its economy.New sanctions signed into law by US President Barack Obama on New Year's Eve would cut off any financial institutions that work with Iran's central bank from the US financial system, blocking the main path for payments for Iranian oil.The EU is expected to impose new sanctions by the end of this month, possibly including a ban on oil imports.Even Iran's top trading partner China - which has refused to back new global sanctions against Iran - is demanding discounts to buy Iranian oil as Tehran's options narrow. Beijing has cut its imports of Iranian crude by more than half for January and, paying premiums for crude from Russia and Vietnam to replace it.
Iran threatens US Navy as sanctions hit economy
The latest in a series of military gestures, Tehran threatens US over Gulf; Iran's rial currency plunges to 40% against dollar.
Western sanctions could seriously effect Iran's oil trade Tehran's threat comes at a time when sanctions are having an unprecedented impact on its economy, and the country faces political uncertainty with an election in March, its first since a 2009 vote that triggered countrywide demonstrations.The West has imposed the increasingly tight sanctions over Iran's nuclear program, which Tehran says is strictly peaceful but Western countries believe aims to build an atomic bomb.After years of sanctions that had little impact, the latest measures are the first that could have a serious effect on Iran's oil trade, 60 percent of its economy.New sanctions signed into law by US President Barack Obama on New Year's Eve would cut off any financial institutions that work with Iran's central bank from the US financial system, blocking the main path for payments for Iranian oil.The EU is expected to impose new sanctions by the end of this month, possibly including a ban on oil imports.Even Iran's top trading partner China - which has refused to back new global sanctions against Iran - is demanding discounts to buy Iranian oil as Tehran's options narrow. Beijing has cut its imports of Iranian crude by more than half for January and, paying premiums for crude from Russia and Vietnam to replace it.