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hunniebearu
U.S. to Press for UN Action on Iran as Early as Today (Update3)
May 3 (Bloomberg) -- The U.S., U.K. and France will move as early as today for adoption of a United Nations resolution demanding that Iran halt its nuclear program, U.S. Ambassador John Bolton said.

``We are going to move ahead very quickly,'' Bolton told reporters at the UN late yesterday. ``We will give the Iranians a relatively short period of time to comply.''

The resolution, replicating a Security Council statement adopted March 29, would have authority under Chapter 7 of the UN's Charter that makes compliance mandatory, Bolton said. Chapter 7 authorizes measures ranging from economic and diplomatic sanctions to the use of armed force. Such sanctions would require the passage of a separate resolution.

The U.S. will try to assemble a coalition outside the UN to impose sanctions on Iran should the council veto any sanctions measure, Bolton told a U.S. House of Representatives subcommittee yesterday. The U.S. suspects Iran plans to build a nuclear bomb, while Iran says its program is for generating electricity.

``If for whatever reason the council couldn't fulfill its responsibilities, then I think it would be incumbent on us -- and I'm sure we would press ahead -- to ask other countries or other groups of countries to impose those sanctions,'' he said.

Oil, Gas

Any proposed UN sanctions resolution wouldn't affect Iran's sales of oil and gas, U.S. Undersecretary of State for Political Affairs Nicholas Burns said yesterday in Paris, where he discussed the nuclear dispute with delegates from the U.K., France, China and Russia. A German delegation joined the representatives of the five permanent members of the Security Council, each of which holds a veto over resolutions.

China's and Russia's statements suggest they oppose sanctions, Bolton said. Russia is building a nuclear power plant for Iran, while China was Iran's third-largest export market for crude oil last year. Iran's top nuclear negotiator, Ali Larijani, has said his nation won't rule out cutting oil exports in response to pressure over the nuclear dispute.

``The Iranians have been very effective at deploying their oil and natural gas resources to apply leverage against countries to protect themselves from precisely this kind of pressure, in the case of countries with large and growing energy demands like India, China and Japan,'' Bolton told lawmakers.

``The Iranians are trying to induce them to make extensive capital investments, such as Japan and the Azadegan oil field, that would make it very difficult for those countries or other countries similarly situated to do what they otherwise would do on a major proliferation question,'' he said.

Escalation of the dispute has helped to boost oil prices by 17 percent over the past two months. Crude for June delivery rose 9 cents to $74.70 a barrel at 12:35 p.m. in London. The contract earlier rose as much as 38 cents to $74.99 a barrel in after- hours electronic trading on the New York Mercantile Exchange. Iran is the world's fourth-largest oil producer.

Further Enrichment

Gholam Reza Aghazadeh, head of Iran's Atomic Energy Organization, said in Tehran yesterday that his scientists have further increased their production of enriched uranium, achieving a concentration of 4.8 percent.

Iranian President Mahmoud Ahmadinejad said Iran had joined the ``nuclear club'' on April 9 by enriching uranium to 3.5 percent. International Atomic Energy Agency Director General Mohamed ElBaradei on April 28 confirmed that Iran had enriched uranium to 3.6 percent by April 16 and showed no sign of halting the nuclear program.

A concentration of 3 to 5 percent is needed to fuel a power plant, while 90 percent is required for a weapon, according to the Institute for Energy and Environmental Research in Maryland.

``Enrichment of more than 5 percent is not part of Iran's program,'' Aghazadeh said. ``This level of enrichment for producing nuclear fuel is sufficient.''

UN Message

The U.S. wants to see a ``stiff message'' adopted by the Security Council and there is some agreement among the panel's permanent members on the proposed measure, Burns said.

``We all agreed on the need for a strong UN Security Council response after ElBaradei's report,'' Burns said, referring to ElBaradei's account of Iran's failure to comply with the March 29 statement. ``We all agreed Iran's nuclear program should be suspended. There can be no more business as usual.''

Jean-Marc de La Sabliere, France's ambassador to the UN, said the resolution should require compliance within a maximum of 30 days. ``It should not be too long,'' de La Sabliere told reporters in New York.

Burns said U.S. Secretary of State Condoleezza Rice and foreign ministers from the other five permanent members of the Security Council will meet May 8 in the U.S. to discuss the issue.

Iran ignored an April 28 deadline set by the Security Council to halt enrichment activities and adhere to all IAEA regulations.

Iran's parliament agreed to allocate an additional $212 million to finish the construction of the country's first nuclear plant, the Russian project in Bushehr, state-run Iran News reported yesterday.
hunniebearu
The Tyranny of Iran
by Martin D. Weiss, Ph.D.
Editor, Safe Money Report & MoneyandMarkets.com
May 2, 2006



http://financialsense.com/editorials/weiss/2006/0502.html
hunniebearu
http://www.adnki.com/index_2Level_English....294707730&par=0

not a very authoritative news source... but still worth to keep in mind...



IRAN: EURO TO REPLACE DOLLAR AS OIL CURRENCY



Tehran, 5 May (AKI) - In July Iran will ditch the dollar in favour of the euro as the currency in which it will accept payments for its oil and natural gas exports, Iranian president Mahmoud Ahmadinejad announced Friday. The switch, first mooted months ago, was expected but Ahmadinejad's decision comes just as Washington is stepping up pressure on other United Nations Security Council members to act against Tehran for flouting agreements taken with the UN's nuclear watchdog.

Ahmadinejad's announcement, made in Baku, Azerbaijan where the Iranian leader is attending a regional economics conference, appears aimed at weakening the United States' resolve to seek sanctions against Iran if it does not comply with the UN International Agency for Atomic Energy's demands.

Some observers beleive the Iranian move could deal a severe blow to the American currency as many central banks from oil importing nations could choose to stock up their currency reserves with euros rather than dollars.
hunniebearu
SEATTLE POST-INTELLIGENCER
http://seattlepi.nwsource.com/business/131..._Oil_Euros.html

Friday, May 5, 2006 · Last updated 9:32 a.m. PT

Analysts skeptical of Iran oil plan

THE ASSOCIATED PRESS

TEHRAN, Iran -- Iran took a step on Friday toward establishing an oil market denominated in euros, a plan analysts described as highly unlikely to materialize but which in theory could have serious consequences for the U.S. economy.

Iranian state-run television said the country's oil ministry granted a license for the euro-denominated market, an idea first floated back in 2004, though just who would trade on it remains unclear.

If the market were to succeed - or if Iran simply demanded payment for its oil in euros - commodities experts said it could lead central bankers around the world to convert some dollar reserves into euros, possibly causing a decline in the dollar's value.

Oil is currently denominated in dollars around the globe, whether through direct sales between producers and consumers or in trades made on markets in New York and London.

But if one day the world's largest oil producers allowed, or worse demanded, euros for their barrels, "it would be the financial equivalent of a nuclear strike," said A.G. Edwards commodities analyst Bill O'Grady.

"If OPEC decided they didn't want dollars anymore," he added, "it would signal an end of American hegemony by signaling an end to the dollar as the sole reserve currency status."

If the dollar lost its status as the world's reserve currency, that would force the United States to fund its massive account deficit by running a trade surplus, which would increase inflationary pressures.

O'Grady said there are practical reasons why the Iranian threat is an empty one.

For starters, Iran is not a very attractive site for a market, given the volatile nature of its politics, the U.S. sanctions against it and the lack of a fair legal system. Moreover, there is no indication that the European Union is interested in vying to become the world's central bank, which requires a willingness to run large currency deficits, he said. For the U.S., that has meant allowing cheap imports to undermine the strength of some major industries, including textiles, autos and electronics manufacturing.

PFC Energy oil analyst Jamal Qureshi said the fears stirred up by a hypothetical euro-denominated oil market in Iran or anywhere else are overblown, not least because the oil trade is just a small component of the overall global economy.

Iranian legislators earlier this year urged the government to set up the market to reduce the United States' influence over the Islamic republic's economy. They also criticized Oil Minister Sayed Kazem Vaziri Hamaneh, saying he had delayed setting up the bourse.

First floated in 2004 when reformist president Mohammad Khatami was in power, the idea of a euros-traded oil bourse gained new life after the stridently nationalist Mahmoud Ahmadinejad was elected president last summer.

Iran is the fourth-largest oil producing country in the world, the second-largest in the Organization of Petroleum Exporting countries and controls about 5 percent of the global oil supply, so it has a measure of influence over international oil markets. Tehran also partially controls the Persian Gulf's Strait of Hormuz through which much of the world's oil supply must pass.

Iran has sought to wield its oil resources as a bargaining tool in Tehran's ongoing standoff with the West over its nuclear program.

Oil prices jumped above $75 a barrel last month amid escalating diplomatic tensions between Washington and Tehran. On Friday, crude oil futures traded just above $70 a barrel.

Iran's deputy oil minister, M.H. Nejad Hosseinian, said Thursday he doubted the U.N. Security Council would impose sanctions on Iran's oil sector because such a move would drive oil prices higher.

Council members are considering imposing sanctions on Iran for defying their request to halt all uranium enrichment-related activities by late last month.

---

AP Business Writer Brad Foss in Washington contributed to this report.
hunniebearu
http://medias.lemonde.fr/mmpub/edt/doc/200...9629_lettre.pdf

The transcript of Iranian President Letter to Bush
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