– IRAN UNDER SIEGE
Iran is one of the richest countries in oil reserves in the world which is so heavily dependant on oil. Despite its richness in oil Iran is importing 40% of its refined oil consumption from abroad because of lack in refining capacity.
Despite, or maybe because of, its huge investment in nuclear and missiles technology the Iranian economy is very feeble. Iran has a yearly inflation rate estimated at 20-30%, and a large budget deficit largely caused by fuel subsidies. Officially the unemployment rate is 11% but, according to experts, the real unemployment is considerably higher than the official numbers.
On Wednesday 06/27/2006, Iranians were given only two hours’ notice of the move that limits private drivers to 100 liters of fuel a month.
Iran is today (05/2007 a major concern to USA, to Arab Sunnite moderate countries in the Middle East and is repeatedly threatening to wipe Israel from the map. Despite its economical crisis, Iran is financing most of anti American and anti Israeli activity in the Middle East and around the World. Iran is financing, to a large extent, the Iraqi insurgency, the Hizbullah in Lebanon, the Hamas and partially the Al Aksa martyrs Brigade in the Palestinian Authority and the new arming of the Syrian Army,
The fuel crisis in Iran reflects the economical vulnerability of Iran. This is probably the Achilles’ heel of Iranian might. The crisis also suggests that economical sanctions are, after all, the best way to cope with Iran.
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