European firms to stop insuring Iranian tankers
KT McFarland weighs in
- Duration 3:04
- Date Jun 26, 2012
KT McFarland weighs in
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Says sticking it to our enemies where it hurts the most shipping insurance gap -- heard me right unless you changes its mind we're less than a week away from sanctions against Iran Qichen.
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 -- I mean 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 has it -- insurance they really gonna send a tanker out.
Yeah I -- are sort of funny because doing insurance we are we -- almost got a war with these guys but what it's like is getting Al Capone in jail they get Al Capone in jail.
Because he had killed a lot of people -- because he was a mafia chieftain.
-- because it isn't.
Taxes and less the same thing that we're doing with Iran.
What -- realize is that Iran 80% of its GNP comes from oil sales.
How do you stop those oil sales you -- do it may be with the military blockade should also do it in directly because they're only a couple of companies.
That ensure that tankers that take the oil from Iran around the world they're only a couple of companies -- have the tankers and then you have to clear all the money.
-- 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 to -- of course in these situations.
The concern is always how is Asia gonna work around -- -- they're the ones that are most desperate for the oil and most willing to sort of make a deal to get it done.
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 for the insurance although I'm not sure practically how that would work out.
Got any other thing the Chinese have done is they've gone to the so they Iranians and say look we are your largest purchaser.
Of oil now we know that other countries at other companies are not gonna buyer or -- -- will take up the rest of the stuff that you're not gonna sell -- them.
But we -- 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 it decreased revenues from its oil sales can the thing that's happening in the starting in July is the banks are gone back to write a check -- write a check to -- you write it.
Premier bank and I deposited into my bank guess what it has to clear.
If -- if the -- rainy and -- can't clear they don't have access to that international banking system.
Denominated -- dollars.
They can't cash that check yeah that's the other sanctions going to come into effect very interesting RE KT thanks for coming -- -- it.