EU-Iran close to breaking point

The European Union last week announced a second round of sanctions against the Iranian regime this year; the most comprehensive and wide-ranging sanctons ever imposed by the 27-member European bloc on any country as analysts pointed out. The European sanctions target Iran's oil and gas industries, banks and financial institutions, shipping and transport sectors and even the media have not been spared. European satellite provider Eutelsat banned last Monday the broadcast of 19 Iranian television channels and radio stations as a result of EU sanctions. Until now 471 Iranian companies and entities and 104 Iranian persons are included in the EU blacklist that includes assets freeze and a ban from entering the EU. The EU sanctions on Iran are so all-embracing that EU officials in Brussels are scratching their heads to find other sectors if Brussels decides on another round of sanctions. The EU argues that the sanctions are meant to persuade Iran to comply with its international obligations and to constrain its development of sensitive technologies in support of its nuclear and missile programmes. Iran asserts that its nuclear programme is solely for peaceful purposes and it has this right under international law. Observes opine that the tightening of sanctions are a clear sign that the European Union is moving away from its policy of engagement and dialogue with Iran towards the US approach of containing and isolating Iran. Although e EU's High Representative Catherine Ashton has led several rounds of talks between Iran and the group of 5+1 (five UNSC permanent members plus Germany) to resolve the nuclear issue no progress has been made yet and analysts do not expect any breakthrough in teh future. The EU maintains that its sanctions are not extra-territorial which means it applies only to the 27 EU member states, but hyet Brussels is urging Iran's major oil buyers like China, India and Japan to join in the oil embargo. On their part, Iranian officials grossly miscalculated and misjudged the intention and determination of the EU policy to tighten the sanctions against Tehran. First Iran said Europe was bluffing and that it will not go ahead with sanctions. Speaking after an OPEC meeting in Vienna last Decemer , Iranian oil minister Ghasem Rostami said that he did not think that the Iranian oil will be sanctioned by Europe. When the EU imposed a blanket oil embargo on Tehran in January the tone in Tehran changed and Iranian officials said the embargo will hurt Europe. "Iran is powerful country and oil sanctions imposed by European countries will only harm the European Union because Iran can easily prove its oil supremacy in the Middle East region," boasted Seyyed Emad Hosseini, spokesman for the Majlis (Iranian parliament) Energy "will definitely lose its oil war because European countries are grappling with numerous crises. Western sanctions are beginning to bite as evident from the riots that broke out in Tehran recently in protest over the collapse of the rial which lost near two-thirds of its value against the dollar. Iranian President Mahmnoud Ahmadinejad blamed Iran's "enemies" for the sharp drop. He said Western sanctions amounted to an "economic war," but insisted they would not stop the country's nuclear programme. The EU claims that the sanctions are targeted against the regime and not against the people, but observers note that it is the people who are suffering due to increase in food prices and essential commodities.  Irnaian business community face huge problems in carrying out international trade and commercial activities due to the sanctions on teh banking sector. Analysts say that the oil embargo has caused a sharp drop in revenue for the Iranian regime and they warn that as the effect of western sanctions continues to bite with the passage of time social discontent will spread across the country.