Peak oil review - Oct 22
by Tom Whipple, originally published by ASPO-USA
1. Oil and the Global Economy
2. Middle EastThe New York Times, citing administration officials, reports that Iran is willing to open direct talks with Washington on the nuclear question after the US elections. Tehran and the White House, however, have denied that any agreement for talks has been reached, but the White House says it is open to the suggestion.
The possibility of talks boosts the administration’s case that sanctions rather than military action is the proper way to handle the situation. Others are already saying that direct talks are merely another attempt by Tehran to stall for time as it continues to work on its nuclear weapons program.
Meanwhile the US and EU imposed further sanctions on Iran’s oil and gas industries last week. Many of these new sanctions are designed to close loopholes that have arisen as Tehran scrambled to find ways around the sanctions. The EU’s sanctions involve freezing the foreign assets of some 30 Iranian companies doing business in the West.
Iran is attempting to portray any strike on its nuclear facilities as a step towards a regional or “global’ war with retaliation taking place against US and Israeli interests. Der Spiegel reports that Tehran is contemplating blocking the Straits of Hormuz with a giant oil spill. Although Iran’s exports would be disrupted too, the theory is that the shutting in of most Middle Eastern oil exports would force the lifting of the sanctions. More