Iranian International Petroleum Exchange (IIPE)Edit
- The first phase of Iran's oil trading market started its work on Kish island in the Persian Gulf, southern Iran, on Sunday February 17, 2008 presenting oil and petrochemical products.
- The transactions will be made in Iranian rial.
- Similar to the Iraq war, military operations against Iran relate to the macroeconomics of ‘petrodollar recycling’ and the unpublicized but real challenge to U.S. dollar supremacy from an alternative oil transaction currency.
Ultimately, the Kish bourse is to directly compete against London’s International Petroleum Exchange (IPE) as well as the New York Mercantile Exchange (NYMEX), both owned by US corporations (since 2001 NYMEX is owned by a consortium which includes BP, Goldman Sachs and Morgan Stanley). What Iran plans to do in the long run is quite daring: to directly challenge Anglo-American energy/corporate banking domination of the international oil trade.
There’s a lot hanging on the balance to assure the success of the bourse already in this first phase. Other OPEC members, and especially Iran’s neighbors, the Persian Gulf petro-monarchies, must be supportive, or at least “catch the drift”.
In the summer of 2005, Mohammad Javed Asemipour, stressed the road map: the bourse would start dealing with petrochemical products, and then with what everybody really craves – light-sulfur Caspian Sea crude. The ultimate goal is very ambitious: the creation of a new Persian Gulf benchmark oil price.
The Iranian Petroleum Ministry’s immediate priorities remain the same: to attract much needed foreign investment in the energy sector in Iran, and to expand its address book of oil buyers.
As the Kish bourse picks up momentum, more and more oil and gas trading will happen in a basket of currencies – and more and more the US dollar will lose its paramount status. Quite a few Middle East analysts expect the Persian Gulf petro-monarchies to end their Petrodollar peg sooner rather than later.
The March 20, 2008 US Declaration of War on IranEdit
As of Thursday, March 20 the US is at war with Iran.
So who made it official?
A unit within the US Treasury Department, the Financial Crimes Enforcement Network (FinCEN), which issued a March 20 advisory to the world's financial institutions under the title: “Guidance to Financial Institutions on the Continuing Money Laundering Threat Involving Illicit Iranian Activity.”
So what does all this bureaucratic financial rigmarole mean?
What it really means is that the US, again through FinCEN, has declared two acts of war: one against Iran’s banks and one against any financial institution anywhere in the world that tries to do business with an Iranian bank.
On March 21, 2007 Levey told the Senate Committee on Banking, Housing and Urban Affairs that unilateral US financial sanctions “warn people and businesses not to deal with the designated target. And those who might still be tempted to work with targeted high risk actors get the message loud and clear: if they do so, they may be next.” Also, the possibility of becoming a Patriot Act Section 311 sanctions victim (which means exclusion from the US market) probably comes up.
If the US succeeds, an international quarantine on Iran's banks would disrupt Iran’s financial linkages with the world by blocking its ability to process cross-border payments for goods and services exported and imported. Without those linkages Iran is unlikely to be able to engage in global trade and commerce.
The repercussions will be painful and extend well beyond lost business and profits. For example, treating curable illnesses will become difficult.
- ↑ "1st phase of Iran oil stock inaugurated on Kish island",Tehran, Feb 17, IRNA 
- ↑ "Iran Oil Bourse may use Russian ruble ", Fri, 15 Feb 2008 
- ↑ "Slouching Towards Petroeurostan ", By Pepe Escobar 19/02/08 "ICH" 
- ↑ "The March 20, 2008 US Declaration of War on Iran",By: John McGlynn Japan Focus 31.03.2008