Iran Ends Oil Transactions In U.S. Dollars

OPEC's Second-Largest Producer Now Pegs Petroleum To Euros And Yen

(AP)  Iran, OPEC's second-largest producer, has completely stopped conducting oil transactions in U.S. dollars, a top Oil Ministry official said Wednesday, a concerted attempt to reduce reliance on Washington at a time of tension over Tehran's nuclear program and suspected involvement in Iraq.

Iran has dramatically reduced dependence on the dollar over the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency.

Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves.

"The dollar has totally been removed from Iran's oil transactions," Oil Ministry official Hojjatollah Ghanimifard told state-run television Wednesday. "We have agreed with all of our crude oil customers to do our transactions in non-dollar currencies."

Iranian President Mahmoud Ahmadinejad called the depreciating dollar a "worthless piece of paper" at a rare summit last year in Saudi Arabia attended by state leaders from the Organization of Petroleum Exporting Countries.

Iran put pressure on other OPEC countries at the meeting to price oil in a basket of currencies, but it has not been able to generate support from fellow members — many of whom, including Saudi Arabia, are staunch U.S. allies.

Iran has a tense relationship with the U.S., which has accused Tehran of using its nuclear program as a cover for weapons development and providing support to Shiite militants in Iraq that are killing American troops. Iran has denied the allegations.

Iranian oil officials have said previously that they were shifting oil sales out of the dollar into other currencies, but Ghanimifard indicated Wednesday that all of Iran's oil transactions were now conducted in either euros or yen.

"In Europe, Iran's oil is sold in euros, but both euros and yen are paid for Iranian crude in Asia," said Ghanimifard.

Iran's central bank has also been reducing its foreign reserves denominated in U.S. dollars, motivated by the falling value of the greenback and U.S. attempts to make it difficult for Iran to conduct dollar transactions.

U.S. banks are prohibited from conducting business directly with Iran, and many European banks have curbed their dealings with the country over the past year under pressure from Washington.

However, the U.S. has been wary of targeting Iran's oil industry directly, apparently worried that such a move could drive up crude prices that are already at record levels.

Iranian analysts say Tehran can withstand U.S. pressure as long as it can continue its oil and gas sales, which constitute most of the country's US$80 billion in exports.

[yongamerica]

No big deal, regardless of the product, it gets translated into a currency at an equivalent rate.

[flagship-usa]

Not so yongamerica. If that were true, there would be no reason to make that changeover.

[bgwinnett]

yongamerica-- It means that customers don''t need to buy Dollars any more to purchase oil off Iran...if they can use their own currencies. This will weaken the Dollars value some more, further undermining it''s status as the worlds reserve currency.

[dronemonk]

This is what poor stewardship of the USD gets us. At what point are we going to stop trying to hang the blame exclusively on foreigners, and come to the realization that (what we''re passing off as) our leadership has failed to look after our interests in an effective way.

Let''s stubbornly keep throwing 2 billion dollars/week at Iraq and see where that gets us.

[abmitus]

Thanks Dubya Bush!

[inachu1]

It is true what they say.
Once Iran drops the dollar Bush will find a way to attack Iran and dropping the dollar is a hostile act?

They have been saying this now for over a year.
It is now comming true.

[book54552134]

"Iran halts trading of oil in US dollars"

Probably a wise move on the part of Iran. They''ve been losing billions of dollars by sticking with the dollar & after all, it''s not like the US is a friend of any kind. They have little reason to help the US by continuing to artificially prop up the US dollar.

[underdogus]

"they get our oil and gives us a worthless piece of paper" Ahmadinejad told reporters...

[j_flood]

I''m an American living in Europe - the Euro has certainly strengthen. I no longer do the conversion in my head when I look at prices in the shops - too depressing. I''d take a bet that by the end of the year many commodities will be Euro-based versus the US dollar.

[ptmcinerney]

But wasn''t this the reason for going to war in Iraq? Like Iran today, Saddam''s regime was preparing to trade in euros prior to invasion. In fact, OPEC have been debating the prospect of trading exclusively trading in euros for some years. As the dollar continues to fall this may well be a reality. The USA is in a very very precarious position.

[underdogus]

It''s 1938 again..SO GET READY FOR WAR!!! WW111 has begun and most Americans don''t even know it....

[ptmcinerney]

But wasn''t this the reason for going to war in Iraq? Like Iran today, Saddam''s regime was preparing to trade in euros prior to invasion. In fact, OPEC have been debating the prospect of trading exclusively trading in euros for some years. As the dollar continues to fall this may well be a reality. The USA is in a very very precarious position.

[underdogus]

fervish US preparations are underway for war on Iran..

[underdogus]

jamesm12341 don''t hold on to your stock''s hold on to your socks b.astard...

[ptmcinerney]

It''s interesting that when nations actually compete with the US in what most Americans would call a free global trading environment and these nations win out (e.g. Iran, the EU in this case) because of intelligent economic decisions...then hey, it''s WW3? Bush should have negotiated that the dollar and euro enter a common trading band a few years ago when he had the chance...it will probably be too late for the incumbent.

[olebd]

This is what happens when you have a "my way or the highway" mentality like the Bush administration. The Bush administration turns it''s back like a scorned child when confronted with different opinions and ideals.

[jjarden]

I tell ya...I''m actually starting to get a little scared of the future at this point.

I know no one has a crystal ball, but can someone please explain to me what they think is going to happen to the US and the American people in the future.

What is happening us? What''s to come? How bad do you think it''s going to get for America and the American people?

I''d appreciate a thoughtful and educated answer...not just a flippant answer like "We''re Screwed," or something like that.

Someone who REALLY knows what''s going on out there. Please weigh in and explain.

[swwils]

This is exactly what we should expect from a nation that has nothing but disrespect,and total Non-Western considerations in their daily lives.This country actually believes we are bewildered from the Iraq war,and we could not defend ourselves against them.Same mistake Japan made!They are on a destroyers path against Israel,and the U.S.

[bgwinnett]

jjarden--Try these articles:

www.europe2020.org/spip.php?article534&lang=en

www.leap2020.eu/GEAB-N-24-is-available!-Global-systemic-crisis-Four-big-trends-over-the-2008-2013-period_a1561.html

[ptmcinerney]

to jjarden: It''s tempting to believe the USs demise is all about Al Qaeda, the "War on Terrorism" or even Bush (depending on your perspective). The reality is obviously a complex matrix of interrelated events, projections and fears many of which the US pioneer mind believes he can ride out. After all, years at the helm of global geopolitics without any real opposition (and the world''s only real military super-machine at its disposal) has left the American with a false sense of superiority. Now that new allegiances are emerging the US feels very threatened. I think a collaborative approach toward diplomatic, economic and geopolitical relations is necessary - signing up to international treaties (such as the ICC for instance) would be a start...but the greatest change of all would need to be a change in the American mind...that he can survive without compromise.

[noaanhc]

The Iranian regime has been a constant danger to the world since the mullahs took power in 1979.Look how much terrorism has increased since 1979,mosted of it funded by those murderous Iranian thugs!!!!They held our US Embassy staff hostage for 444 days and what did we do to about this outrage NOTHING!!!!
Iran is still in the business of funding mass murder on a global scale and yet we and the world continue to do nothing to stop them.
Hindsight is 20/20 but if you ask me the US should have taken out this regime in the 1980s and ended this threat,but we didn''t and now we face the possibility of attacking Iran and this will be a diaster for our country.Our failure to act 25 years ago have now led us to this time and place.

I fear for the future of my country.

[ptmcinerney]

to noaanhc:
But the US *did* support the liquidation of Iran...by supporting Saddam for decades in the Iran/Iraq war. It was win/win for the US...Iranian expansion into the northern oil fields stopped, the troublesome Kurds suppressed, *and* cheap oil paid for in petro-dollars. Now that the free trade dynamic has changed, the US gets in a twist. For a nation of people so convinced of the infallibility of free market economics, her leaders seem to have very little grasp of the concept.

[johnwnowlin]

In 1953 the CIA helped to overthrow the democratically elected Mosaddeq government of Iran and reinstall the Shah. After suffering under the Shah for 40 years the Iranians finally toss him out and upon learning that the USA through the CIA caused this situation, take over the American Embassy in 1979. During the Iran-Iraq war (1980-1988) the US supported Iraq against the Iranians.

Yet after all this, the Iranian people held spontaneous candlelight vigils to pray for the people of America after 9/11. They assisted us in our assault on Osama in Afghanistan. Now they have a civil war next door to them that we started, yet are still making peace overtures and offering to assist us in getting out of our Iraq quagmire.

So now that the current administration has inflated the dollar until it is worth 1/2 of its previous value, you would expect the rest of the world to stop using it. But, no some are insulted that the Iranians would take the entirely understandable step of not using dollars that are becoming more worthless every day.

Yet will all this, *** Cheney and his hand puppets George and David seek to attack Iran. What the rest of the world sees, we are blind too.

[ptmcinerney]

This is all a bit doom and gloom :( It is the gross protectionism of the US that has lead to her apparent paralysis. To play on an equal playing field requires adhering to a common set of rules. The same applies to global economics. While the rest of the world is getting on with the game, the US is relying on the good old imperialist approach rather like the approach she used in the 19th century (think Cuba and Haiti...ever wonder why they are so messed up?). The only way out is the US''s proactive engagement in internationally agreed institutions and treaties...this would, however, require debate, diplomacy, argument and compromise...things, like oil, that seem to be in very short supply.

[concorde5]

I applaud Iran for finally making the depreciating dollar an real issue and secondly for standing up to the US.

We can''t keep pushing around other nations and expect them to just stand there and take it.

[hungry1968]

We can''''t keep pushing around other nations and expect them to just stand there and take it.

Posted by concorde5 at 10:16 AM : Apr 30, 2008




That''s America''s foreign policy that we picked up from Israel.

***** in the face of your enemies, in an effort to force them to adhere to your demands.

It''s a policy that''s been failing for 60 years in Israel, so Bush thought he''d give it a shot.

[random_radar]

I wish I could get paid in Euros. At least they are still worth something.

[cfarer43]

An attack on Iran has been planned by the US since the release of the "Project for a New American Century in 1997 the Project for the New American Century is a non-profit, educational organization whose goal is to promote American global leadership. The Project is an initiative of the New Citizenship Project (501c3); the New Citizenship Project''s chairman is William Kristol and its president is Gary Schmitt.

Part of the "project is to usurp leadership in the Middle East. With Iran''s meteoric rise to power in that region, it is anathema for the US (and Israel) to sit back and watch the changing of the guard.

Bush and his handler Israel react with bomb first and ask questions later. WMD?

[cfarer43]

An attack on Iran has been planned by the US since the release of the "Project for a New American Century in 1997 the Project for the New American Century is a non-profit, educational organization whose goal is to promote American global leadership. The Project is an initiative of the New Citizenship Project (501c3); the New Citizenship Project''s chairman is William Kristol and its president is Gary Schmitt.

Part of the "project is to usurp leadership in the Middle East. With Iran''s meteoric rise to power in that region, it is anathema for the US (and Israel) to sit back and watch the changing of the guard.

Bush and his handler Israel react with bomb first and ask questions later. WMD?

[jjarden]

Thank You ptmcinerney and bgwinnett for answering my question.

Anyone else like to weigh in?

What is happening to us, and America?...What''s to come?...How bad do you think it''''s going to get for America and the American people?

[binarygirl1]

I too am very worried about the immediate future, I saw the link to the article on whatreallyhappened.com and then verified it with Google News. This will likely be the catalyst for an engagement with the US. I am worried but hopeful for the future. If the psychopaths from Washington and Tel Aviv want a total war against humanity then this is a war that we must be prepared for. While we may or may not live in a global pathocracy there are enough normal human beings who want complicated things like: life, love, peace, food/shelter and while I think that things may get bad economically and socially for all of us irregardless of location; this entire system is based on a single premise that We the People NEED this system. This system that is manipulated and controlled by psychopaths for the benefit of a pathocracy. When we collectively realise that we do not need the system as-it-is then we can create a legitimate system of government for and by normal human beings. This is why I feel that the tyranny of the future will be short lived.

-Binary

[binarygirl1]

I too am very worried about the immediate future, I saw the link to the article on whatreallyhappened.com and then verified it with Google News. This will likely be the catalyst for an engagement with the US. I am worried but hopeful for the future. If the psychopaths from Washington and Tel Aviv want a total war against humanity then this is a war that we must be prepared for. While we may or may not live in a global pathocracy there are enough normal human beings who want complicated things like: life, love, peace, food/shelter and while I think that things may get bad economically and socially for all of us irregardless of location; this entire system is based on a single premise that We the People NEED this system. This system that is manipulated and controlled by psychopaths for the benefit of a pathocracy. When we collectively realise that we do not need the system as-it-is then we can create a legitimate system of government for and by normal human beings. This is why I feel that the tyranny of the future will be short lived.

-Binary

[binarygirl1]

I too am very worried about the immediate future, I saw the link to the article on whatreallyhappened.com and then verified it with Google News. This will likely be the catalyst for an engagement with the US. I am worried but hopeful for the future. If the psychopaths from Washington and Tel Aviv want a total war against humanity then this is a war that we must be prepared for. While we may or may not live in a global pathocracy there are enough normal human beings who want complicated things like: life, love, peace, food/shelter and while I think that things may get bad economically and socially for all of us irregardless of location; this entire system is based on a single premise that We the People NEED this system. This system that is manipulated and controlled by psychopaths for the benefit of a pathocracy. When we collectively realise that we do not need the system as-it-is then we can create a legitimate system of government for and by normal human beings. This is why I feel that the tyranny of the future will be short lived.

-Binary

[enriquecaliente]

Well now, it seems that the real WMD is the devaluation of the dollar.?

How dare they.! Only the USofA has the God given right to destabilize other peoples way of life.

Where the hell is the CIA now that we need them.

Oh that''s right, their too busy here, spying on Americans, as per the Patriot Act.

[chabuka-2009]

Russia talks to Iran..you know, negotiates...Russia buys lots of oil from Iran, they have trade traties...Bush/Cheney refuses to "sit down with Iran" calls Iran "axis of evil", "evil-doers", "Islamo-fascists", etc....has carriers floating around itn the Persian gulf...threatens to "take " Irans resources...do to them what we did to Iraq... Iran resents these actions?...what ingrates..!

[forthepeopl1]

SO TELL ME WHY THE BIGGEST BUISNESS COMPANY A AMERICAN COMPANY IS STILL DOING BUISNESS WITH THEM IN IRAN???WHAT COMPANY. GENERAL ELECTRIC!!!!!!!!!!!!!

SO WHY CAN THEY DO IT

[forthepeopl1]

United States May Declare State of Emergency


Associated Press Writer
ISLAMABAD, Pakistan (AP) %u2013 The whitehouse government of embattled President bush said Thursday it may impose a state of emergency due to ``external and internal threats'''' and deteriorating law and order.
including from Democratic presidential hopeful Barak Obama, over the possibility of U.S. military action against al-Qaida in Pakistan ``has started alarm bells ringing and has upset the Pakistani public.''''
But it appeared the motivation for a declaration of an emergency would be the domestic political woes of
President bush
During a state of emergency, the government can restrict the freedom to move, rally, engage in political activities or form groups and impose other limits such as restricting congress right to make laws or even dissolving congress
``These are only unconfirmed reports although the possibility of imposition of emergency cannot be ruled out and has recently been talked about and discussed, keeping in mind some external and internal threats and the law and order situation,bush told The Associated Press.
``I cannot say that it will be tonight, tomorrow or later. We hope that it does not happen. But we are going through difficult circumstances so the possibility of an emergency cannot be ruled out,'''' he added.
America television networks reported that a declaration of an emergency was imminent, but other senior government officials said no final decision had been made.

[forthepeopl1]

In Washington, the State Department said . ``
Bush is under growing American pressure to crack down on militants at the Afghan border because of fears that al-Qaida is regrouping there.
The Bush administration has also not ruled out unilateral military action inside america but like Obama, has stressed the need to work with the americans.
An aide to the president, who requested anonymity because of the sensitivity of the issue, bush was due to meet with Cabinet members , the attorney-general and leaders from the ruling party on Thursday to discuss whether an emergency should be declared.
He did not expect a declaration of an emergency in the early hours of Thursday.
A senior government official, who requested anonymity because of the sensitivity of the issue, said bush had held several meetings Wednesday with, legal experts and top figures of the ruling party and the leaking of possible emergency plans indicated that it was a serious option.
Under our constitution, the head of state - the president - may declare a state of emergency if it is deemed that the country''s security is ``threatened by war or external aggression, or by internal disturbance beyond'''' the government''s authority to control.
If a state of emergency is to be extended beyond two months, it must be approved by a joint sitting of, the constitution says.
------

[forthepeopl1]

PEOPLE - - BEGIN TO RESEARCH and PROBE THIS ! ! ! !

SPECIAL "CLOSED SESSION" OF U.S. HOUSE OF REPRESENTATIVES

Word has begun leaking from last nights special,
Closed-door session of the United States House of Representatives.
Not only did members discuss new surveillance provisions as was the publicly stated
Reason for the closed door session, they also discussed :

1. The Imminent Collapse of the U.S. economy to occur by September 2008
2. The imminent collapse of US federal government finances by February 2009
3. The possibility of Civil War inside the USA as a result of the collapse
4. Advance round-ups of "insurgent U.S. citizens" likely to move against the Government
5. The Detention of those rounded-up at "REX 84" camps constructed throughout the USA,
6. The possibility of retaliation against members of Congress for the collapses
7. The Location of "safe facilities" for members of Congress and their families
To reside during expected massive civil unrest
8. The necessary and unavoidable merger of the United States with Canada
(for its natural resources) and with Mexico (for its cheap labor pool)
9. The issuance of a new currency - THE AMERO -
For all three nations as the proposed solution to the coming economic armageddon.

Members of Congress Have Been FORBIDDEN to reveal what was discussed
Several are so furious and concerned about the future of the country,
they have begun leaking info.

[bgwinnett]

forthepeopl1. I agree the economy is going to collapse in September, and the rest -- of your fears -- will almost certainly occur, in such circumstances. However you are preaching to the blind unfortunately. I don''t think that even the country''s leaders understand how bad the situation is and how to sort it out, let alone the sheeple.

[mbcsmith]

Good, the plan is working.

[yongamerica]

No big deal, regardless of the product, it gets translated into a currency at an equivalent rate.

[yongamerica]

Iran''s economy is on the brink of collapse. A iranian civil rebellion would be in full swing if it were not for an Iranian police force that larger than its army, just as well equipped, and has standing orders to kill anyone that deviates from the theocracy''s rulings. Iran rules its people in such a strict police state, it makes China seem like a western democracy.

[inventagod2]

NOW I understand why The Cheney Gang wants to nuke Iran...

[pentangyl]

This is the reason why we went to war with IRAQ! Saddam was going to do the same thing!

[trishab4]

"they get our oil and gives us a worthless piece of paper" Ahmadinejad told reporters...
--------------------------------------------------------------------------------
Posted by underdogus at 07:03 AM : Apr 30, 2008

-That is it! A trust is very hardly built, but so easily destroyed. The actual American administration is abusing all trusts previous ones built with sweat and earnst efforts. Down with Cheney, Down with Haliburtoin, Down with this creepy administration.

It''s time the face of the USA be presented with another look. A vote for the McCane or Sen. Clinton is a vote for continuity of the same policies that lead to sapping the previous administrations trusts toward the world.

America needs a change and that change will only come by ELECTING BARACK OBAMA and his pro-American team. BO for president.

[mcv57]

This tells me that Iran''s nuke defensive arsenal is up-and-running. By the time the U.N. and U.S. wage war and attack, the Iranians should have their offensive tactics in place.

Hmmmmmm, Nostradomus is right. The Bushwacker played into his hands like a flower to a bee.

[pentangyl]

Venezuela will pobally take IRAN''s LEAD. I know the Rothchilds (Shell Oil) and the Rockefellers (Exxon)are furious! since they own the Federal Reserve I am going to hate to see what comes out of this financially! GAS $10.00 a gallon!

I''m buying a scooter, thankful I live in South Beach!

[pentangyl]

If you have money in the bank get it out and start transferring roughly about 40% to 60% of the cash into gold!

Trust me!
Gold will never loose its value!
The banking system will collapse!

[pentangyl]

No big deal, regardless of the product, it gets translated into a currency at an equivalent rate.

Posted by yongamerica at 03:46 PM : Apr 30, 2008


You clearly don''t understand US Economics!