Industrialized Cyclist Notepad


James Hamilton on Iranian oil embargo
January 15, 2012, 17:46
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The most likely outcome of an embargo on oil purchased from Iran is that the countries participating in the embargo buy less oil from Iran while other countries not participating in the embargo by more oil from Iran ([1], [2]). While this would produce some dislocations, if total world oil production doesn’t change, it would have little effect on either Iran or oil-consuming countries, and would basically be a symbolic gesture.

via Econbrowser: Iranian oil embargo.

But, Hamilton reminds us, if the embargo is successful, it will have a profound effect on the oil market.