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By staking out a policy line on Iran reflecting the views of the Israeli national security leadership, Deputy Prime Minister Shaul Mofaz has undercut the Benjamin Netanyahu government’s carefully planned strategy to get U.S. President Barack Obama to threaten war against Iran if it doesn’t give up its nuclear programme. ››read more
America’s policy on Iran-related secondary sanctions is on a collision course with itself as well as China. Secondary sanctions violate the United States’ obligations under the World Trade Organization and are, thus, illegal. (While a WTO signatory may decide, on national security grounds, to restrict its trade with another country, there is no legal basis for one state to impose sanctions against another over business that the second state conducts with a third country.) If Washington actually imposed secondary sanctions on another state for, say, buying Iranian oil and the sanctioned country took the United States to the WTO’s Dispute Resolution Mechanism, the United States would almost certainly lose the case. ››read more
Editor's note: As predicted by the authors a day before the oil embargo against Iran came into effect, the US has now exempted China from punishment for purchasing Iranian oil.