U.S. SANCTIONS ON IRANIAN OIL WILL ONLY HURT THE WEST

"... A key amendment to the National Defense Authorization Act signed by United States President Barack Obama on the last day of 2011... imposes sanctions on any countries or companies that buy Iranian oil and pay for it through Iran's central bank. Starting this summer, anybody who does it is prevented from doing business with the US. This amendment - for all practical purposes a declaration of economic war - was brought to you by the American Israel Public Affairs Committee (AIPAC), on direct orders of the Israeli government... The price of oil may be destined to soon reach $120 a barrel and even $150 a barrel by summer...

"(But)... everyone... will be bypassing this Israeli-American declaration of economic war:
- Russia already said it will circumvent it.
- India is already paying for Iranian oil via Halkbank in Turkey.
- Iran is actively negotiating to sell more oil to China. Iran is China's second-largest supplier, only behind Saudi Arabia. China pays in euros, and soon may be paying in yuan. By March they both will have sealed an agreement about new pricing.
- Venezuela controls a bi-national bank with Iran since 2009; that's how Iran gets paid for business in Latin America.
- Even traditional US allies want out. Turkey - which imports around 30% of its oil from Iran - will seek a waiver exempting Turkish oil importer Tupras from US sanctions.
- And South Korea will also seek a waiver, to buy around 200,000 barrels a day - 10% of its oil - from Iran in 2012..."

http://www.atimes.com/atimes/Middle_East/NA07Ak01.html