Monday 10 December 2007

China makes the most of the Iranian boycott

China is not to be underestimated when it comes to securing future commodity stocks. While the West take the moral high ground over Iran's nuclear developments China is busy behind the scenes signing lucrative oil deals.

An entirely rational decison but one that may undermind the US' position on Iran.

Iran signs $2bn oil deal with China [FT]

Iran signed a $2bn oil contract with Sinopec of China on Sunday, sending a signal to western companies that they might miss out on potentially lucrative contracts with one of the world’s biggest energy exporters if they continued to heed US-inspired sanctions against Tehran.

“If other countries who like to invest in oil and gas hesitate, they will lose opportunities,” said Gholam-Hossein Nozari, Iran’s oil minister.

It will be interesting to see whether Western policy changes in light of this deal and those like it that are sure to come in the next few months and years.


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