Monday, June 29, 2015

The Impact of the Economic Embargo of Iran by the United State and the European Union for International World

source: http://mycatbirdseat.com/wp-content/uploads/2013/08/iran-sanctions.jpg
The United State is one of the most influence countries in the world. Every actions and policy that be applied by the US is always become concern of the other state. And of course it is possible that the other states will join or come in the same line with the United State to maintain their relations. And as state who regarded as the super power state, the United State will do anything if there is threaten in all aspect for their position in International world.
Along with the United State, European Union is one of important partner for them especially in economic sector. Taking good and services together, the EU and the US account for the largest bilateral trade relationship in the world. The economic aspect to the EU and the US relationship has therefore been crucial in developing the direction of joint policy. So the EU and the US are the world’s most important traders. (nello, 2005)
Not only in trade sector, the EU and the US are seems like always same in decision in International act, for example in the case of Iranian nuclear program development. The EU joins with the US in efforts to stop Iran action on nuclear program, because of their perspective that it would be danger for international world. To responses it Iran action, the US and the EU together give sanction to Iran through economy embargo.
Iran is one of the most important actors in region of Middle East. (Wardani, 2015). Iran also has an important position in oil export of the world. Most of the country in the world import Iranian oil, including the EU state and the US. But recently Iran faced any difficulties in economic because of the economic embargo as the responses of their Iranian nuclear program development.
Currently, Iran has quiet action in their nuclear program development, especially on uranium. It supported with their good nuclear infrastructure, including uranium mining, milling, conversion, and enrichment capabilities. The most controversial dimension of the program has been Iran’s effort to build up its enrichment capabilities, which could be used to produce highly enriched uranium for a nuclear weapon. (name N. , 2015)
Iran declares that their nuclear program is only for peace mean and industrial needed, but the US and the EU keep tighten their economic embargo in effort to stop Iran action. This economic embargo make Iran be isolated from international, because its make difficult for individual or state keep any relations with Iran. And of course it economic embargo really give impact not only for Iran but also in international world.
Some information argue that this economic embargo influence the oil price and economic condition for some counties. Because until now, Iran still became the second biggest producer and oil exporter in the world. Iran supply oil needed of the world for around $130 billion. (Pujayanti, 2012)
Iran not only quieted in this economic embargo by the US and the EU. Responses to the US and the EU economic embargo, Iran stop their oil export for some counties in Europe such as for United Kingdom and France. Iran also created new policies in their agreement in trade sector, with the long term contract. In the other side, Iran builds new trade agreement with China and erasing the US dollar in oil transaction between both countries.
Iran also stated that they will close the Hormuz strain as the most strategic way for the flow of oil trade of the world (Pujayanti, 2012). It would be done by Iran if there is a brunt for Iran state and their nuclear facility. Hormuz strain is a trade strip for 8 oil producer states in Persia gulf.
If the Hormuz be lost from the trade strip it will give bad impact for the world economy. Because it will increase the oil price of the world, and if oil price increase it will give impact for the other goods price in the world. It is possible that International world will faced the big inflation. And it also rally impacted for the importer oil state.
This economic embargo is also makes some difficulties for trade state relations. While this economic embargo is not really influence Iran to stop their nuclear program development. Precisely, it make Iran became the autonomous state or not dependent with another state to fulfill their needed. It also makes Iran stronger in facing any difficulties and threat from another state.
In conclusion is that the economic embargo which is given by the US and the EU in order to responses the Iranian nuclear program development really impacted for International world, especially in economy of the state.

References :
  • name, n. (n.d.). help for researchers. Retrieved june 30, 2015, from EU-US International Relations: http://www.bl.uk/reshelp/findhelpsubject/socsci/eurunion/euusrel/euusrels.html
  • name, N. (2015, june). IRAN Overview. Retrieved june 26, 2015, from NTI Building a safer world: http://www.nti.org/country-profiles/iran/
  • nello, s. s. (2005). the european union, economics, politics, and history. new york: McGraw-Hill Education.
  • Pujayanti, A. (2012, february). Info singkat Hubungan Internasional. Retrieved june 30, 2015, from Sanksi Ekonomi terhadap Iran dan: http://berkas.dpr.go.id/pengkajian/files/info_singkat/Info%20Singkat-IV-4-II-P3DI-Februari-2012-16.pdf
  • Wardani, S. A. (2015). Middle East Studies.

Also See :
The erasing sanction towards Iran by Sri
Economic Sanctions Against Iran And Its Impact by Fachrul
United States and European Union : Iran Nuclear Crisis, Policies and Future Relationship by Zanuar
Joint Comprehensive Plan of Action (JCPOA) :A love Letter from the West by Anggi Widyastuti
The U.S - EU Sanction on Iranian Oil Exports by Metri Pangestika