The embargo applies not only to new contracts but also existing contracts -- to be voided by July 1, and includes extra sanctions targeting Iran's central bank and petrochemical exports to the EU. It's always crucial to remember the embargo -- a de facto European declaration of economic war -- was forcefully proposed in the first place by the neo-Napoleonic "liberator" of Libya, France's President Nicolas Sarkozy. The official EU excuse for the economic war is "serious and deepening concerns over the Iranian nuclear program."
It didn't help that Moscow had already warned the EU to stop acting as mere pawns of Washington -- once again shooting themselves in their Ferragamo-clad feet. The Russians know all there is to know about how this embargo may horribly backfire.
The EU defends its strategy -- or economic war -- as the only way to avert "chaos in the Middle East." Yet the economic war may end up sparking the full-blown war it is theoretically trying to avert; talk about an array of unintended consequences waiting in the wings.
The tracks of my tears
Of the top five Iranian oil importers, four are in Asia; two BRICS members (China and India), plus US allies Japan and South Korea. It's fair to argue that all these importers would severely blame the Americans/Europeans for their provocations (in fact some are already doing that) should Iran consider blocking -- or activating a series of mines -- in the Strait of Hormuz.
The EU insists on spinning its so-called "dual-track" approach towards Iran. Stripped of spin, dual-track essentially translates in practice as "shut up, bow to our sanctions, stop enriching uranium and sit on the table to negotiate on our terms."
So when the EU's foreign policy head -- the stupendously innocuous Catherine Ashton -- spins about the "validity of the dual track approach," serious diplomats across the developing world can only interpret it for what it is; a joke. That's not exactly an incentive for Iran to renew nuclear negotiations with the "Iran Six" group (permanent United Nations Security Council members the US, Britain, France, Russia, China, plus Germany).
Meanwhile, the Lord of the European poodles -- the Obama administration -- is applying all sorts of pressure over Asian powers to stop buying Iranian oil. Fat chance. For all of them -- including Japan and South Korea -- it will remain business as usual; they need Iran's oil even more than the West.
Even BP -- the sterling polluter of the Gulf of Mexico -- has asked the Obama administration for an exemption from sanctions. It all has to do with a key Pipelineistan chapter -- the development of the immense Shah Deniz II gas field in Azerbaijan.
There's no way Europe can benefit from Caspian Sea gas without a massive $22 billion investment to develop Shah Deniz II -- of which Iran holds a 10% participation. Shah Deniz II would be essential to supply the Nabucco pipeline -- if it ever gets built. Nabucco bypasses Iran's strategic ally Russia -- which happens to maintain a stranglehold over Europe's gas supply, as Europeans themselves never cease to complain in Brussels.
If Iran blocks it, the deal dies. So we have a post-surrealist situation of Britain's Big Oil -- via BP -- imploring for the US to exempt it from sanctions, otherwise European energy security will be at risk. Britain also happens to be an implacable foe of Tehran's regime, but still relies on Iran to "save" Europe from the claws of Gazprom. You can't make this stuff up.
The City never sleeps
The name of the game in Iran will always be regime change because the perennial wet dream of Washington and the European poodles is to grab Iran's fabulous oil (12.7% of global reserves) and gas wealth. And the fact is that wealth is increasingly profiting the Asian Energy Security Grid -- and not the West.