This transcript is automatically generated
Says sticking it to our enemies -- it hurts the most shipping insurance gap -- -- unless -- changes its mind we're less than a week away from sanctions against Iran -- That's when -- -- and that would mean that London based insurers which covered 95% of tanker shipments.
Won't protect Iran's biggest oil buyers and no company wants a multi billion dollar liability on its hands so is this the solution.
To all of -- -- and our our problems with Iran KT McFarland.
A Fox News national security analyst joins us now.
TT -- -- -- this seems like it's gonna have a big impact on them but perhaps also on us Iran is OPEC's second largest oil producer bomb near the third largest exporter in the world.
And this sounds like it could have a big impact -- -- -- insurance they really gonna send a tanker out.
I -- sort of funny because -- -- sure as we are we almost got a war these guys but what it's like it's getting Al Capone in jail they get out component jail.
Because he had killed a lot of people -- because he was a mafia chieftain.
-- because it isn't.
Taxes and that's the same thing that we're doing with Iran.
What we've realizes it or -- 80% of its -- comes from oil sales how do you stop those oil sales you could do it may -- US and military blockade.
We should also do it in directly because they're only a couple of companies.
That ensure the tankers that take the oil from Iran around the world -- -- a couple of companies -- have the tankers and then you have to clear all the money.
That gets paid to run -- -- sales through US banks so that's what these sanctions are targeting.
They're targeting the insurance company yeah they're targeting that tanker companies and their target in the banks and they feel as a result of that.
They may not stop operating and -- from getting the market but -- -- make it much more difficult to get to market.
Much more difficult of course and these situations.
The concern is always how is Asia gonna work around us because they're the ones that are most desperate for the oil and most willing to sort of make a deal to get it -- Japan is working and securing parliamentary approval that would let the government provide the insurance that's one in China is asking Iran.
To take the risk and sort of foot the bill to -- tripled I'm not sure practically how that would work out.
Got any other thing the Chinese have done is they've gone to the -- -- Iranians and say look we are your largest purchaser.
Of oil now we know that other countries and other companies are not got a buyer or LA -- will take up the rest of the stuff that you're not gonna sell -- down.
But we want -- new price we want to negotiate a much cheaper price.
So as a result Iran is gonna get yet it's going to get hit because of -- Is the banks are gotten out to write a check and write a check to meet you write it.
Premier bank and I deposited into my bank guess what it has to clear.
If if the -- rainy and it's can't clear they -- access to the international banking system.
Denominated in dollars they can't cash that check yeah that's the other sanctions going to come into effect very interesting -- KT thanks for coming up we appreciate.