Tuesday, September 11, 2007
The sanctioner has become the sanctionee. If you neglect the political tit-for-tat implications of this move, it's almost a no-brainer for Iran. The Euro has been holding value much better than the dollar has, so this move makes sense for Iran on a couple of levels. No immediate impact in terms of the U.S. economy, but could initiate a cascading effect - others will continue to question why they trade in such a weak currency...supply and demand aren't the only reasons oil is at $78 per barrel.