Oil Market Impact of Sanctions Against the Central Bank of Iran
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Oil Market Impact of Sanctions Against the Central Bank of Iran Mark Dubowitz & Reuel Marc Gerecht FOUNDATION FOR DEFENSE OF DEMOCRACIES November 2011 Oil Market Impact of Sanctions Against the Central Bank of Iran Mark Dubowitz Reuel Marc Gerecht November 2011 FDD PRESS A division of the FOUNDATION FOR DEFENSE OF DEMOCRACIES Washington, DC Oil Market Impact of Sanctions Against the Central Bank of Iran About The Authors Mark Dubowitz is executive director of the Foundation for Defense of Democracies. His policy work focuses on Iran and Syria, sanctions, and on the use of technology to encourage democratic change. He is the director of the Iran Energy Project which provides leading research and analysis in support of strong, broad-based energy sanctions--including gasoline, natural gas, and oil sanctions--as part of a comprehensive strategy to end the Iranian regime’s pursuit of nuclear weapons, support for terrorism and human rights abuses. It also focuses on the risks of foreign companies in doing business with the U.S. government-blacklisted Islamic Revolutionary Guard Corps, a dominant force in the energy sector. Mr. Dubowitz writes frequently on Iran energy sanctions issues. He is a regular contributor to Forbes’ Energy Source . His work is often featured in international print and broadcast media. Mr. Dubowitz co-authored past Iran Energy Project reports, including Iran’s Chinese Energy Partners: Companies Eligible for Investigation Under U.S. Sanctions Law and Iran’s Energy Partners: Companies Requiring Investigation Under U.S. Sanctions Law. !"#$%#&'"#()*+,&')-#). #.),-#()/\1"/&$+2# studies provided by FDD to the U.S. government on: (1) the oil market impact of sanctions against the Central Bank of Iran; (2) the role of the Islamic Revolutionary Guard Corps in the Iranian crude oil supply chain; (3) the role ). #&'"#3456#$/#&'"#-"\/"1#7"&-)2",8#&-+1"9#+/1:#;<=#&'"#(-"+&$)/#). #&'"#>/$&"1# States as an “Iranian-Oil-Free Zone” to prohibit the importation into the U.S. ). #-"\/"1#7"&-)2",8#7-)1,(&%#1"-$?"1#.-)8#3-+/$+/#(-,1"@ A-@#B,C)D$&E#'+%#&"%&$\"1#C".)-"#6)/F-"%%#)/#3-+/#%+/(&$)/%#$%%,"%#+/1#C-$"."1# &'"#8$2$&+-G:#F)?"-/8"/&#+/1#(),/&"-&"--)-$%8#).\($+2%#)/#+#-+/F"#). #/+&$)/+2# security and terrorism-related concerns. Reuel Marc Gerecht is a senior fellow with the Foundation for Defense of Democracies. He focuses on Iran, Iraq, Afghanistan, terrorism, and intelligence. Mr. Gerecht is the author of The Wave: Man, God, and the Ballot Box in the Middle East (Hoover Institution Press, 2011), Know Thine Enemy: A Spy’s Journey into Revolutionary Iran (Farrar, Straus & Giroux, 1997) and The Islamic Paradox: Shiite Clerics, Sunni Fundamentalists, and the Coming of Arab Democracy #;HI3#J-"%%:#KLL<=@# He is a contributing editor for The Weekly Standard and a correspondent for The Atlantic Monthly , as well as a frequent contributor to the Wall Street Journal , the New York Times :#+/1#)&'"-#7,C2$(+&$)/%@##!"#$%#&'"#()*+,&')-#). #&D)#()/\1"/&$+2# studies provided by FDD to the U.S. government on: (1) the oil market impact of sanctions against the Central Bank of Iran, and, (2) the creation of the United States as an “Iranian-Oil-Free Zone” to prohibit the importation into &'"#>@M@#). #-"\/"1#7"&-)2",8#7-)1,(&%#1"-$?"1#.-)8#3-+/$+/#(-,1"@ Mr. Gerecht served as an Iran specialist at the CIA’s Directorate of Operations. Oil Market Impact of Sanctions Against the Central Bank of Iran About The Iran Energy Project The Iran Energy Project is a project of the Foundation for Defense of Democracies (FDD). The project ( www.Iranenergyproject.org !" #$%&'()*" $)*)+$,-" +.(" +.+/0*'*" 1-+1" '().1'\)*" 3$+.S*" ).)$50" &6/.)$+7'/'1')*" +*" #+$1" %8 " +" ,%9#$)-).*'&)" *+.,1'%.*" *1$+1)50" 1%" ).(" 1-)" 3$+.'+." $)5'9)S*" .6,/)+$" :)+#%.*" program, support for terrorism, and human rights abuses. The project also analyzes the prominent role of the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ark Dubowitz Benjamin Weinthal " CK),61'&)"J'$),1%$ " I)//%:B"M)$/'. Reuel Marc Gerecht Jonathan Schanzer " A).'%$"I)//%: Vice President of Research Emanuele Ottolenghi Laura Grossman " A).'%$"I)//%:B"M$6**)/* " A).'%$";)*)+$,-"D.+/0*1B" " F$%5$+9"N+.+5)$B"A#),'+/"" Research Projects About the Foundation for Defense of Democracies E-)"I%6.(+1'%."8%$"J)8).*)"%8 "J)9%,$+,')*"'*"+".%.O#$%\1B".%.O#+$1'*+."#%/',0"'.*1'161)"()(',+1)(" )K,/6*'&)/0"1%"#$%9%1'.5"#/6$+/'*9B"()8).('.5"()9%,$+1',"&+/6)*B"+.("\5-1'.5"1-)"'()%/%5')*"1-+1"($'&)" 1)$$%$'*9>"I%6.()("*-%$1/0"+81)$"1-)"+11+,?*"%8 "PQRRB"IJJ",%97'.)*"#%/',0"$)*)+$,-B"()9%,$+,0"+.(" counterterrorism education, strategic communications, and investigative journalism in support of its mission. 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