Strategy Page brings us up to date on what's happening with the sanctions imposed against Iran:
The new, and more severe, sanctions against Iran have been in force for nearly two weeks and they are hurting. Oil shipments, according to the Iranian government, are down 30 percent. Inflation, according to the government, is somewhere north of 20 percent. It's actually closer to 30 percent, largely because the government just prints more money to give angry Iranians, to help offset the ever-rising prices. This just makes the inflation worse....
Inflation and shortages of imported goods are both getting worse. This hurts most Iranians and has turned public opinion against the nuclear weapons program. The religious dictatorship that has run the country for three decades, long ago lost the loyalty of most Iranians. The corruption, brutality, and hypocrisy of the government has been matched by brutality and the loyalty of a quarter of the population that, for religious reasons, backs the clerics....
Normally Iran pumps three million barrels a day. But about a third of that output has already lost its customers and oil wells are being shut down to reduce production. In June, Iranian production officially shrank 150,000 barrels a day. But the reality is greater. Iran has been storing unsold oil on ships but there are no more unused tankers for this (despite ordering 12 new ones from China and India), and Iran is hustling to expand the black market for oil. Iranian sales agents are making it known that deals can be made, to get large quantities of oil at large discounts. There is some risk but the profits would be great....Iranian smugglers have been very resourceful in the past, but smuggling oil that must be moved in 330 meter long super tankers is much more difficult.
Right now the Iranian government is facing monthly losses of $3 billion a month because of lost oil sales. The Iranian government budget is $38 billion a month, so that lost oil income is a major problem for cash-strapped Iran....Much of the budget goes to aid the poor and unemployed (who got that way largely because of the corruption and economic mismanagement of the religious dictatorship). Money must also be lavished on the quarter of the population who support the ruling clerics. Many Iranians are already feeling the pinch and they are not happy.
There's more at the link. Meanwhile, the U.S. and its allies are preparing for military action to keep the Strait of Hormuz open. According to
debkafile:
The USS John C. Stennis arrives in August, raising the number of American aircraft carriers in waters off Iran to four including the USS Enterprise and the USS Abraham Lincoln, with the French Charles de Gaulle due soon to make up a fifth.
Thursday, July 12, American military officials announced that the US is also dispatching to the Persian Gulf dozens of tiny, unmanned SeaFox submersibles that can detect and destroy mines if strewn by Iran to block the strategic Strait of Hormuz, the chokepoint for transporting one-fifth of the world’s oil.
There are now additionally eight American minesweepers in the Persian Gulf as well as the USS Ponce, a platform for the special forces, helicopters and warships there to fight off Iranian marine units attempting to plant mines in the vital waterway.
There are predictions afloat that Mr. Obama will initiate some kind of action against Iran in October in order to muster the country behind him in November's election. Perhaps I'm naive, but I think that's a bit too cynical. Even if Mr. Obama would do such a thing he must realize it'd be counterproductive since such an obvious ploy would surely repel voters rather than attract them....Wouldn't it?