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January 16, 2012

EU Embargo on Iranian Oil: How Likely & What Impact?

Chatham House, Chatham House


New American

This paper considers the possible outcomes of an EU embargo on oil exports from Iran.

  • The initial impact is that the EU countries will have to find alternative supplies to replace their imports of heavy, sour crude from Iran.
     
  • The hunt for alternative supplies will create transitional friction for oil prices. Thus prices for heavy source crude in the Atlantic basin markets would increase and in Asia-Pacific they would decrease as Iran tried to find alternative outlets for the crude originally destined for European markets. . .
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TAGGED: energy security, EU energy policy, sanctions, foreign oil, oil, iran, Chatham House

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