Original Article Post Date:
The Other Side of the Sanctions
The Journal of Turkish Weekly
11 August 2012
Iran has been pushed into a corner and is fighting for its life. The safest weapon in its arsenal is an economic strategy; and it is the one point where the United States is vulnerable.
There is no doubt about it. Section 1245 of the National Defense Authorization Act that was signed into law by President Obama on December 31, 2011 is having the intended effect upon Iran.
Unlike previous sanctions, Section 1245 attacks the foundation of the Iranian economy. The provisions of the law seek to stop the sale of crude oil and to block transactions between the Iranian central bank and the rest of the world. About fifty percent of the national budget is funded from the sale of exported crude oil that provides eighty percent of the foreign exchange. "Crude (oil) sales are a trap which we inherited from the years before the (1979 Islamic) Revolution," Khamenei told a gathering of researchers and scientists at the end of July.