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September 25, 2006       Share:    

Source: http://www.tau.ac.il/jcss/tanotes/TAUnotes185.doc

The Iranian Nuclear Crisis: The Implications of Economic Sanctions

[Jaffee Center for Strategic Studies-Tel Aviv University] Shmuel Even - The sanctions potentially available to the international community range from a freeze on financial transactions and cooperation agreements through restrictions on trade in sensitive materials and freezing of Iranian assets abroad all the way to a total economic embargo. A total embargo would inflict a heavy cost. Iran could withstand the sanctions for some time, but such an embargo would bring about a sharp drop in living standards. Iran needs to import gasoline because its refinery capacity to too small to satisfy local needs; an embargo would force Iran to cut back on gasoline consumption by about 37%. Moreover, sanctions would help prevent the import of raw materials and equipment for the development of non-conventional weapons and surface-to-surface missiles and would limit Iran's ability to export weapons. Iran would also be left with far fewer resources to support terrorist organizations and finance the export of the Islamic revolution to other countries, including Lebanon.

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