On Thursday, March 20, the US will be at war with Iran, and it has nothing to do with Iran's nuclear ambitions. It's the oil.
A unit within the US Treasury called the Financial Crimes Enforcement Network (FinCEN), has issued a March 20th advisory to the world's financial institutions. The advisory is titled, “Guidance to Financial Institutions on the Continuing Money Laundering Threat Involving Illicit Iranian Activity.”
In essence, the USA will have declared two acts of war against Iran; one against Iran’s banks and one against any financial institution anywhere in the world that tries to do business with Iran's banks.
The worldwide price of a barrel of oil has traditionally been set by US-dominated oil bourses, or major trading markets.
There are two major petroleum bourses; the New York Mercantile Exchange (NYMEX) in New York City, and the International Petroleum Exchange (IPE) in London & Atlanta. Both bourses are controlled by US corporations (NYMEX is actually owned by a conglomerate including BP, Goldman Sachs and Morgan Stanley).
On March 20 Iran is moving full speed with a competing market, the International Oil Bourse (IOB) - also called the Kish Bourse because Iran's trading center is located on Kish Island off southern Iran. Kish was selected because it had been previously designated as Iran's free trade zone.
The Kish Bourse/IOB was set up in 2008 to trade oil contracts in Iranian rials, euros, Chinese yen - in fact, in any major currency other than USD.
Iran is, in short, challenging Anglo-American energy/corporate banking domination of the international oil trade by attempting to supplant the US greenback as the only standard by which world oil prices are fixed. Iran is breaking the US corporate monopoly. Pretty slick? Read More