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The hidden sanctions By Yossi Melman Tags: Yossi Melman Click here for more articles by Yossi Melman In Western eyes, Iran's conduct in the case of the British soldiers does not seem logical. In the West, it is hard to understand why the Iranians would need to capture the British sailors and marines, and why they do not quickly release them. After all, with the provocation they generated, they are playing into the hands of the United States and Britain, which are perceived by Iran as plotting to attack its nuclear sites (together with Israel). But Western logic is not necessarily Iranian logic. In capturing the British soldiers, in refusing to release them and in deciding to bring them to trial, Iran is seeking to signal to the world that it is determined to continue to advance its nuclear program, and not give in to international pressures, and to act resolutely against anyone who tries to harm it. Advertisement Nonetheless, it is also possible the case of the British soldiers reflects the power struggles that have been waging for many months in the top echelon of the Iranian government. For about a year and a half, two main camps have been facing off in Iran. One comprises the moderate conservatives led by former president Hashemi Rafsanjani; the mayor of Tehran, Mohammad Bagher Ghalibaf; and the secretary of the Supreme Council for National Security, Ali Larijani. All three competed in the presidential race about two years ago. The second camp, the extreme conservatives, is led by Mahmoud Ahmadinejad, who defeated the moderates. This camp is supported by clerics like the messianic ayatollah, Mesbah Yazdi, and by the popular militia Basiji and members of the Revolutionary Guards. Besides these two camps, there is the weakened reformist camp, symbolized by former president Mohammad Khatami. The supreme leader, Ali Khamenei, rules over all of these. In its refusal to accede to the UN Security Council's demand to suspend its uranium enrichment activity, Iran is ostensibly trying to show the world that the sanctions imposed on it are not weakening its hand. But Iran's moves attest to panic and weakness more than strength. Iran fears the profound international isolation in which it is becoming mired. In addition to concerns about the overt and "official" sanctions of the Security Council, there is fear of hidden sanctions. These are sanctions that international corporations, primarily banks and financial institutions, are imposing on Iran without publicly declaring so. These sanctions are mainly driven by secret activity by the U.S. Department of Treasury, designed to pressure companies in the U.S., Europe and Asia to refrain from commercial ties with Iran, or at least to reduce them. In recent months, some 50 of the world's leading banks and financial institutions have complied with these pressures. The most prominent are Swiss bank UBS, Germany's Commerzbank and London-based HSBC. At the same time, the Bush administration is keeping pressure on the world's governments to cut back their commercial relations with Iran. India, for example, is being asked to cancel a project for laying a gas pipeline. The boycott - both the overt one and mainly the hidden one - is intended to strike at the "soft underbelly" of Iran's economy: the oil and gas industries, which provide 80 percent of the state's revenues. And indeed, the economic stranglehold is bearing fruit. The oil industry and the gas industry, which desperately need billions in investments to renew their obsolete equipment, are finding it difficult to obtain financing. There is a significant decline in foreign investments in Iran. The religious establishment and the political establishment in Iran fear that the damage the sanctions are causing to the state's economy will stir public anger against them. When the supreme leader realizes that Ahmadinejad's policy threatens the regime's survival, he will have to exercise his influence and authority, even at the price of painful concessions. The continued existence of Iran as an Islamic republic is the highest imperative guiding Khamenei. Whoever wishes to force Iran to back away from its nuclear program should further tighten the economic blockade on it. Bookmark to del.icio.us   Venezuela's Jews Jewish community head: 'Chavez's government endorses anti-Semitism.' Breakthrough start-up WATCH: Israeli company invents radiation-free lung imaging system.   1.   Europe is collaborating with Iran 10:26  |  Jonathan S 04/04/07   2.   MONET TALKS B/S WALKS IS AS TRUE AS IT EVER WAS 11:19  |  paul harris 04/04/07   3.   Making the iranians crazy 11:57  |  pro bono publico 04/04/07   4.   Yes and get rid of that Meshugenah leader of theirs too 12:57  |  Nicole 04/04/07   5.   Tie the turban a bit tighter 12:58  |  Chaim Gorenstein 04/04/07   6.   In Iran 3 executions are scheduled...... 13:17  |  Lynn 04/04/07   7.   No response from the Israel basher????? 13:33  |  Infidel 04/04/07   8.   #6 Lynn Nothing will help these poor people 13:34  |  Yonatan 04/04/07   9.   Jonathan S 13:46  |  Lynn 04/04/07   10.   Earth Calling Clickfool 14:09  |  Zardos 04/04/07   11.   #7 Infidel,have some patience please 14:21  |  Hastaroth 04/04/07   12.   Yonatan 14:36  |  Lynn 04/04/07   13.   #1 Jonathan S 15:15  |  Chris Linthwaite 04/04/07   14.   Perhaps those complaining about pending executions 15:23  |  Chris Linthwaite 04/04/07   15.   #14 Chris Lintwat 15:56  |  Star of David 04/04/07   16.   Chris Linthwaite 16:00  |  Melanie Yazdi 04/04/07   17.   Iran War and Jews who defend Iran 16:22  |  SJ 04/04/07   18.   to Hastaroth on spitting venom 16:25  |  Anubhav 04/04/07   19.   Question for Israelis: Is war with Iran inevitable? 17:22  |  Brad 04/04/07   20.   Where are the Refuseniks within Iran?????? 17:52  |  Ronnie Wolman 04/04/07   21.   To Ronnie Wolman 19:17  |  Persian Kitty 04/04/07   22.   Persian Kitty: Joan of Iran 19:36  |  Ronnie Wolman 04/04/07   23.   To Lynn and Chris Linthwaite 19:41  |  Persian Kitty 04/04/07   24.   Persian Kitty: Its doesnt take Much does it? 19:43  |  Ronnie Wolman 04/04/07   25.   Chris Lintwaite 19:47  |  Sarah 04/04/07   26.   For Lynn about the real scandal 19:54  |  Jonathan S 04/04/07   27.   To Ronnie Wolman Part I 20:17  |  Persian Kitty 04/04/07   28.   To Ronnie Wolman Part II 20:28  |  Persian Kitty 04/04/07   29.   To Ronnie Wolman Part III 20:33  |  Persian Kitty 04/04/07   30.   #28 Persian Kitty part II 20:47  |  Yonatan 04/04/07   31.   Tighten economic sanctions on Israel 21:02  |  Andreas 04/04/07   32.   Anubhav #18 21:06  |  Sarah 04/04/07   33.   To Yonatan 21:10  |  Persian Kitty 04/04/07   34.   To Yonatan - Found the Text 21:16  |  Persian Kitty 04/04/07   35.   Sanctions? 21:45  |  P. J. Casey 04/04/07   36.   Persian Kitty: I have many Iranian Friends 21:52  |  Ronnie Wolman 04/04/07   37.   Who is the west? 22:21  |  Billy Jack 04/04/07   38.   I deal In electronic parts and my biggest 23:28  |  Francois 04/04/07   39.   To Yonatan - SECOND TRY 00:05  |  Persian Kitty 05/04/07   40.   To Ronnie 00:07  |  Persian Kitty 05/04/07   41.   persian kitty...thank you for these links 01:23  |  the colonel 05/04/07   42.   May Heaven sanction a cyinic like Andreas 03:54  |  Fortuna Benmayor 05/04/07   43.   Chris Linthwaite 04:46  |  Lynn 05/04/07   44.   Persian Kitty 04:48  |  Lynn 05/04/07   45.   # 23 Persian Kitty 04:57  |  Lynn 05/04/07   46.   #41 Fortuna benmayor 06:42  |  Labhras 05/04/07   47.   To Jonathan S. @1 14:19  |  Mark B. 05/04/07

Read & React Obama: Time for Palestinians, Israel to resume peace talks Responses: 45 Miri Eisin: Is only the Israeli narrative 'the truth' and all the others wrong? Responses: 20 Bradley Burston: The Gaza War as reality television Responses: 17 EU aid chief: Hamas 'enormously responsible' for Gaza war Responses: 57 Summit on Holocaust: Gaza war legitimized equating Jews with Nazis Responses: 45 More Headlines 10:38 Bomb explodes near IDF patrol along Gaza border 10:27 Israel stymies French push to lift European boycott of Hamas 10:24 Sarkozy to update Shalit's father on latest efforts to free son 07:57 Obama: Time for Palestinians, Israel to resume peace talks 03:31 ANALYSIS / Recognizing that Israel's effort to topple Hamas has failed 08:43 Kadima kicks off campaign with threat to assassinate Hamas chiefs 02:20 Head of right-wing think tank: Settlements must be evacuated 09:34 After 60 years, Jewish siblings separated in Holocaust reunited 10:46 Israel to face 'catastrophe' without Palestinian state, says Jimmy Carter 09:05 Police say case against Lieberman boosted by newly revealed documents 09:11 Barak seeking to 'Putinize' image to attract Russian vote 09:06 Summit on Holocaust: Gaza war legitimized equating Jews with Nazis 22:07 'In Venezuela, anti-Semitism is endorsed by the government' 08:10 Israel Eurovision singers skip benefit concert for Gaza civilians, citing political tug-of-war 04:15 Gideon Levy / My Shabbat dinner with Rabbi Avraham Ravitz 08:13 Suspect in Tel Aviv pedophile case ran child prostitution ring 08:54 Vatican: Comments by bishop who denied Holocaust unacceptable Previous Editions Select Day 26 jan 25 jan 23 jan 22 jan 21 jan 20 jan 19 jan 18 jan 16 jan 15 jan 14 jan 13 jan

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