If the sorry parade of European poodles - or what analyst Chris Floyd delightfully dubbed Europuppies - had any understanding of Persian culture, they would have known that blowback for their declaration of economic war in the form of an Iranian oil embargo would be nothing short of heavy metal.
Better yet; death metal. The Majlis (Iranian parliament) will discuss this Sunday, in an open section, whether to cancel right away all oil exports to any European country that approved the embargo - according to Emad Hosseini, the rapporteur of the Majlis Energy Committee. And that comes with the requisite apocalyptic warning, relayed via the Fars news agency, courtesy of member of Parliament Nasser Soudani: "Europe will burn in the fire of Iran's oil wells."
Soudani expresses the views of the whole Tehran establishment when he says that "the structure of their [Europe's] refineries is compatible with Iran's oil", and so Europeans have no alternative as replacement; the embargo "will cause an increase in oil prices, and the Europeans will be compelled to buy oil at higher prices"; that is, Europe "will be compelled to buy Iran's oil indirectly and through intermediaries".
According to the EU sanctions package, all existing contracts will be respected only until July 1 - and no new contracts are allowed. Now imagine if this pre-emptive Iranian legislation is voted within the next few days. Crisis-hit Club Med countries such as Spain and especially Italy and Greece will be dealt a deathblow, having no time to find a possible alternative to Iran's light, high-quality crude.
Asia wants a new international system - and it's working for it. Inevitable long-term consequences; the US dollar - and, crucially, the petrodollar - slowly drifting into irrelevance. "Too Big to Fail" may turn out to be not a categorical imperative, but an epitaph.
