Report: Obama Considers Iran Gas Cut-Off

Source: UPI

WASHINGTON, Aug. 3 (UPI) -- The United States is considering a move in cooperation with allied countries to cut off Iran's gasoline imports, foreign officials say.

The Obama administration has broached the idea of cutting off Tehran's supplies of gasoline and other refined oil products if it refuses to negotiate on its nuclear program with European allies and Israeli officials, who spoke to Monday's New York Times on condition of anonymity.

White House national security adviser James Jones mentioned the possibility of an extreme economic sanction in a visit to Israel last week, the newspaper said.

The Times said the White House refused to confirm or deny the reports. But unnamed administration officials said the move is meant to buttress President Barack Obama's efforts to get Israeli officials to stop dropping hints about a possible military strike on Iran's nuclear facilities if no progress is made this year, the newspaper said.

more: http://www.upi.com/Top_News/2009/08/03/Report-Obama-considers-Iran-gas-cut-off/UPI-42911249301096/

Just one possibility.

No problem, no impact.

Iran doesn't refine their only gas. The export raw oil but import refines gasoline.

The idea is a ban on imported gasoline.

China won't take up the slack because China can barely keep up with their own gasoline demands.

In fact, unless things have changed, the US doesn't much Iranian oil already and prohibits investments of over $40M/year by US parties.

This is about blocking the importation by Iran of refined products like gasoline. They do not have the refining capacity to produce their own, even though they are a major oil producer.