Iran to base oil revenues on Euros

[Lord Zentei]

Well, if we just trash their refineries, we collapse their economy, and therefore they won't be doing any trading in Euros because they won't be selling oil. It'd make a nice example out of them as well.

Neither will they be trading in dollars, just to add to what Nitram said. Even from a purely selfish perspective, this plan isn't such hot shit.

[RedImperator]

What effect do you think this will have on countries which own a lot of our debt? I assume our debt is counted in dollars, rather than the currency of the holding country.

Since that debt is an asset for them, they're in no hurry to see the US dollar inflate to worthlessness. Still, it's not comforting to know that your country has spent itself into depending upon the tender mercies of Asian central bankers.

[J]

Invade Iran, anyone?

Well, if we just trash their refineries, we collapse their economy, and therefore they won't be doing any trading in Euros because they won't be selling oil. It'd make a nice example out of them as well.

Well, aside from an OPEC oil embargo and skyrocketing oil prices & inflation to go along with it, a stock market collapse, economic hell & crippling debt for many millions of Americans with bankruptsies all around, even more hatred from pretty much every country other than Israel, permanent destruction of Mid East relations, and screwing up the armed forces even more, it sounds like a great idea. Better get used to paying $10-20 for a gallon of gas several times more for food & other essentials while your wage stagnates or falls, that is if you still have a job.

[J]

An update. Iran has reportedly stopped accepting US dollars as payment for oil.

Link

U.S. dollars not accepted for Iranian oil


Published: Dec. 8, 2007 at 4:24 PM
Print story Email to a friend Font size:TEHRAN, Dec. 8 (UPI) -- The Iranian government reportedly is refusing U.S. dollars as payment for its oil, calling it an "unreliable currency."

Iranian Oil Minister Gholamhossein Nozari was quoted as saying Saturday that because "the dollar is no longer a reliable currency," his country would no longer accept it in oil sales, RIA Novosti reported.

"In line with a policy of selling crude oil in currencies other than the U.S. dollar, the sale of our country's oil in U.S. dollars has been completely eliminated," Nozari reportedly said.

The monetary move comes after Iranian officials proposed excluding U.S. dollars from oil sales at an Organization of the Petroleum Exporting Countries summit in November.

China's official Xinhua news agency said Iran's opposition of the U.S. dollar appears to be a response to growing pressure from the United States regarding the Middle Eastern country's controversial nuclear program.

[Guardsman Bass]

Do you think we'll see this in terms of greater inflation here in the US right away, or will it take a good chunk of time?

[J]

Hard to say, though I think it's something that's going to take a while to work its way through the system before affecting the US. The US doesn't buy any oil from Iran so it's not directly affected, but the countries which do and pay in US dollars will be looking for something to do with all their suddenly useless greenbacks.

[NeoGoomba]

I wonder if the economic consequences of this will be used by Iran as a topic to try and get the US off its back in nuke talks?