Iran Retaliates Against Sanctions: To Drop All Trade In "Filthy" Euro, Dollar

Tyler Durden's picture

Yet another step in the escalation between Iran and the US came earlier today, this time in the form of some trade war shots, after the leading economic daily Doniye e-Ektesad quoted First Vice President Mohammad Reza Rahimi as saying that "We are going to remove dollar and euro from our foreign currency
basket and replace them with (Iranian) rial and all other currencies of
the countries which accept to cooperate with us. These currencies are filthy and we will no longer sell
our oil in dollar and euro." AFP further clarifies: "He did not say when that would go into effect, or how Iran was going to
implement that decision as the second largest exporter in the
Organisation of Petroleum Exporting Countries (OPEC), in an energy
market dominated by the dollar." This is certainly not the first time Iran has threatened to move away from the dollar: the problem, of course, is execution. "Rahimi also said that Iran would limit its purchases from the European
Union, which amounted to 11.4 billion euros or 27 percent of the Iranian
imports in 2009, according to official EU statistics. He said this would mainly affect Iran's food imports such as wheat and soybeans from Europe."

Oddly enough, Iran is now threatening with going Chinese, and becoming self-reliant.

Rahimi said that "sophisticated equipment," currently imported, will also be manufactured locally "by the Iranian youths, but it needs time."

Following a fourth round of UN Security Council sanctions against, the United States and the European Union expanded their own punitive measures against Iran in July over suspicions that Tehran's nuclear programme is masking a weapons drive. Iran denies these charges.

Canada and Australia followed suit after the US and EU sanctions, which target Iran's economy and banking system, banning investment and transfer of technology to its vital oil and gas sectors.

One can only wonder just how much of a factor Russia may be in this decision, and whether the ruble and the renminbi will be the ultimate benfactors of this decesion, should it prove to be more than just rhetoric.

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megatoxic's picture

And honestly, who can blame them?

The dollar and the euro are both "managed" by the the most corrupt, fraudulent, amoral people on the planet.  They are, in fact, filthy.

I wish them luck.

SDRII's picture

Bigger story is the IAEA saying Iran restarted another centrifuge bloc. Hez leader giving firey speech implicating Israel in the Harari assasination and border tensions high.

This as Russia planning to speed up delivery of fuel and rumors abound about a Saudi coup attempt by Bandar "Bush" being dismissed as Iranian propoganda.

"Prince Bandar bin Sultan, who was the grandson of Ibn Saud, and Hassa bint Ahmed al-Sudairi, one of the most honored and respected women in Saudi Arabia, was appointed Saudi ambassador to the U.S. in 1983, at the age of 34, an appointment he served for twenty years. Prince Bandar has had unprecedented access to Presidents and most senior American officials since the Reagan era. He was a close family friend of the Bushes, named affectionately by Barbara as “Bandar Bush”."


Lots of rumors flying around

hangemhigh's picture

"...rumors abound about a Saudi coup attempt by Bandar "Bush"........

the rumors about the bandar bush coup are very interesting.  the way the story is spun has bandar attempting to do a deal with the russkies on the sly.

what if that version were 'thru the looking glass' stuff and the truth is that he was trying to warn m16 and the west about a deal that king abdullah had already cut with putin/moscow???? that sort of arrangement would be terminal for the ny/london anglo axis of evil. 

sounds like the old chinese mantra....may you live in interesting times.......................


Cathartes Aura's picture

a mantra is traditionally used for transformation or enlightenment. . .

so maybe it is. . . both, hm.

SDRII's picture

Add to it:

The report this AM of the Chinese general warning the US over carrier deployment in Yellow Sea as antagonizing biggest creditor

The US calling in Vietnam

Hillary's comments about the US having a role in the disputed island issues

The report few days ago the US is moving forward with another base in Kyrgyz

The 56 OSCE participating States agreed the deployment of police advisors to Kyrgyzstan in a decision taken by the Permanent Council  - Kyrgyz officials protest

Reported US troop deployment in Azeri territory

Russian reopening of Tartus in Syria last year

New_Meat's picture

and, when the air war started in 1991 (start of Desert Storm) the rumors were that Zahal had aced Abu Nidal in a safe location in Iraq.  Of course, after investigation, it turned out that he'd committed suicide with about 300 rounds to himself.

must be time to outlaw automatic weapons in Baghdad and Chicago.

- Ned

themosmitsos's picture

Tyler, 2mths ago in your article about US fleet movements by Marla, we had a debate about size of force & significance of it, and again in this article I argued about the severity (capacity/ability) of the Iranian counter-response. I argued public information (fleet rotation) was not true objective of movements as was the US fleet was larger than reported & ships were specialized & also arriving from Asia. Here is proof:


As Israeli Iron Dome (short range) missile shield has been reported 2b completed and operational in last 30days,this now confirms that Israel's Arrow (long range), Sling (medium) & Iron Dome (short range) missile shields are now fully linked & operational **w/AEGIS & US Defense Satellites**, and along w/Naval based interceptors of various types and US Patriots and other ground based interceptors, **intended to work in conjunction.** It is significant as these are steps in absolute expectation of an Iranian counter-response of a substantive nature, not just in size, but in quality, and hence expectant of the act that provokes them, ie an attack on Iran., and they are also significant diplomatically (US will *NOT* be able to claim clean hands).


What is most significant & only partially hinted above, is Israel demands OPERATIONAL COMMAND & UNECUMBERED ACCESS to US systems w/out the filter of the US Command Structure, which the insinuation is in the article above, HAS been given regarding Long Range Missiles (more likely to bear WMDs). These activities represent the last act necessary before Israel (or the US) attacks Iran.


Morever, there are WIDELY confirmed reports just the past 3-4days of Iranian IRG Quds & Intelligence agents arriving and TAKING COMMAND of FRONTLINE units of the Lebanese Armed Forces (9th), Hezbollah units, AND THE FRONTLINE DIVISIONS OF THE SYRIAN ARMED FORCES OVERLOOKING THE GOLAN having DIRECTLY threatened the Syrian government to fall in line in the last 3days, while also simultaneously threatening to overthrow the Lebanese government should it not blame Israel for the assassination of  the PM.


Also note over the past few days Iranian claims of possession of S300s which are in fact FAR more sophisticated than it is being presented publicly, have a MUCH larger range than being reported, and have the capacity to be retrofitted for “other” usage (WMD delivery).


Perhaps nothing will happen. But I don’t speak out of turn on these matters, I speak from a position of knowledge. These moves are VERY far along the chessboard, and the last 2-3-4 weeks we’ve entered the phase of diplomatic “moves/insults” that can’t be reversed, this article about Iran shifting 100% away from USD & EUR for all transactions being just the latest. Should conflict commence, the US & Israel will LOSE …. ALL opening phases of this war, and BADLY. This situation holds dramatic potential for very, very serious escalation. That’s why *that* composition of the fleet. These behaviors also insinuate a timeframe pre-November US elections, which may explain some of that action in the Chicago pits for September as imo it can’t be explained just by expecting a huge sell-off. Sure would help Obama & the Democrats win. Ra-ra-ra, USA. Perhaps they learned from Bush better than you’d think.

DocLogo's picture

I speak from a position of knowledge



bona fides?

New_Meat's picture

Doc +1, but from an Art C. perspective I might be able to add. - Ned

DocLogo's picture

where will they be getting their wheat from if not the EU and Russia not exporting this year?

israhole's picture

I concur with 'megatoxic', and would add that if the US weren't terrorist Israel's bitch-boy, we'd have nothing but friends in the Middle East.

DocLogo's picture

I would argue that you don't know what you're talking about. Our relationship with Iran has nothing to do with Israel and was set in motion back in the 1950's. Mohammad Mosaddegh was ousted by the CIA to protect BP's (then the AIOC) oil interests. They put in the Shah, which lead to the revolution. In the 80's, it was the Anglo-American empire that was playing both Iran and Iraq for fools, arming both sides and pointing them at each other. Yes, Israel helped arm Iran during Iran/Contra, but that doesn't help your argument. Even if there was never an Israel, US interests would remain the same and therefore our actions would remain the same. The US would just find another proxy to do its bidding.

Our relationship with Iraq had nothing to do with Israel either. If it did, we would't have installed a Saddam Hussein into power. Our current relationship with Pakistan came about after the Soviets entered Afghanistan, an event that had nothing to do with Israel. Pakistan and India are at war, so without an Israel, we'd still be in a position of having to balance both relationships.

Come to think of it, there is no historical argument to be made to support your belief that we'd have nothing but friends in the middle east.

Your single note commentary is getting old. The world is not so black and white.'s picture

You make some very valid points, but would you agree that US support for Israel complicates matters? The current hub-bub at least seems to be largely Israel driven.

jakoye's picture

Of course it does. Allying with any country means their enemies become your enemies.

Life would also be easier for the US vis-a-vis China if we didn't support Taiwan, South Korea and Japan. And easier with Russia if we didn't support Poland, Hungary, Czech Republic, Baltic Republics, and Georgia.

I get it, you're an isolationist and an "anti-Zionist" (whatever... but I'll play your name game in the interests of this discussion).

So if you were dictator for a day, the number of allies of the US would drop to zero, right?

New_Meat's picture

... er, US support, interest, dis-interest, antipathy, disregard--well, they "complicate matters?"

Hillary is in the prime of her political life fomenting: whatever.  but she's "making a difference".

Involving US always complicates things.  Maybe they can be complicated in a "good" direction.

Your definition of "good" goes <here>.

- Ned

GoinFawr's picture

"The world is not so black and white."

Indeud Doc, which is why I am more than a little surprised at parts of your comment contending the US doesn't have a sort of serial involvement with other nations of the region. You are usually quite astute when it comes to seeing how the 'leg bone is connected to the hip bone'.


DosZap's picture


Uh-huh..............all over, party balloons,ice cream and cake.

All poison.What part of HATE us, our way of life do you not get?.

IF there were no Israel, it would not change one friggin whit.

Your not dealing with rational human beings.These people are still in the middle ages......and their religious fanatics, and they treat their people like animals.

Esp the women........

If the US did not have anything to GAIN by aiding Israel, you think they would for an instant?.No way.

That part of America went out in 1945.................

Cognitive Dissonance's picture

Here we go. Most people don't know that before Iraq and Afghanistan were attacked by America, they both repudiated the US dollar as the currency they would use for international transactions, particularly buying and selling oil.

The US sees this as a direct threat and a national security matter. But since this is too mundane a thing to convince the average American to send their sons and daughters to slaughter, a more "patriotic" reason had to be concocted.

The rest, as they say, is history.

LoneStarHog's picture

Yesterday's Tin Foil Is Today's News!

SheepDog-One's picture

Exactly. What everyone said was nuts weeks ago is now todays headlines.'s picture

But those who made the right call are still considered to be loonies.

New_Meat's picture

but not people watching the good calls vs. the other.

and, who cares in trading or life wtf others consider.

- Ned

Internet Tough Guy's picture

Afghanistan isn't much of a player in the oil market.

Jason T's picture

they are in the opium market.

Cognitive Dissonance's picture

Didn't say they were. But they are strategically very important. And I said international trade. Take a look at the (newly built and older) oil pipelines running through Afghanistan and then look at the US bases locations. And why didn't you mention Iraq?

Plus it was/is a Muslim nation. Can't have those Muslims refusing to accept dollars for anything. It might give others some bad ideas. It's all about the US dollar, the world's reserve currency. It's what keeps the world's Ponzi going.

When the world agreed to accept the dollar as the reserve currency back when the US repudiated the international Gold standard, it was also agreed that in order to make it work, everyone had to play by the rules. And when they didn't, the US would kick some sense into the laggards.

Anarchist's picture

The world did not agree to oil priced in dollars. The US "coerced" Saudi Arabia and Kuwait to agree to the peg. The implied threat was that the US would invade. Kissinger also told them and Iran to jack up the price per barrel in order to devalue the US dollar. A little fact in history the Sheep incorrectly blamed on the Arabs.

Cognitive Dissonance's picture

You mean I didn't state clearly enough the implied threat? Shall I rephrase?

Most of the world "agreed" to use the dollar, including those with the power and those with the most to lose by not going along. The rest were "persuaded" to follow the herd. Or like I said, the US would/did/will convince the laggards to come along.

Problem Is's picture

Sodomy Hussein ordered Iraq's UN food for oil account held by NY banks switched to the Euro in 2000.

Excellent use of facts and accurate historical analysis Professor CD...

Hence, you were junked by AIPAC.

BTW: Neither Iraq nor Afghan-i-nam had a Western controlled central bank before the invasions... they do now...

Cognitive Dissonance's picture

BTW:Neither Iraq nor Afghan-i-nam had a Western controlled central bank before the invasions... they do now...

Mission Accomplished. Two more nations under the control of the powers that be through their ability to control (or extort) their "host" nations own money supply and economic health.

LeBalance's picture

According to Another and FOFOA, oil is priced in Gold, and accounts are cleaned up at the end of the quarter with a shipment of Gold to the Payee.

What fool of a king would want a warehouse filled with paper at the end of fifty years of trading in oil? Anyone's paper.

In that same light dollars are priced by Gold and as Gold (paper) is created by Gold (real) by further derivatizing and fractioning in the financial industry and Gold (paper, inflated) creates a value for dollars. Its price has no choice but to increase.

FOFOA is much more eloquent and I do him/her/many poor service with my butchery of their comments.

Frank Owen's picture

"It's all about the US dollar, the world's reserve currency."

CD, I would imagine you have stumbled across "Rob Newman's History of Oil" in your travels:

LoneStarHog's picture

On the contrary, look which two countries border Iran on the East and West.  Look where the Caspian Sea is located, which is landlocked, which means oil can only be transported by pipeline. 

Everything has a reason other than what we read/hear...

LeBalance's picture

LOL, checked your pipeline routes?

$950B Opium crop, golly that hit the Queen of England right where it hurts. (See Opium Wars).

So that would be the reason for the ethnic cleansing.  Similar to the same happening in Iraq.

Depleted Uranium: "Its not just the arrow you kill tanks with today, its the radioactive leave-behind that you kill entire countries forever with."

Cathartes Aura's picture

Depleted Uranium: "Its not just the arrow you kill tanks with today, its the radioactive leave-behind that you kill entire countries forever with."


what is rarely mentioned is the DU "sticks" to the righteous, chosen ones who use it, returning to their intimates, loved ones, a form of genocide that remains un-speak-able.

"military suicides make up about 20% of all suicides in the U.S., suggesting that the problem is worse among the armed forces than in the general population since veterans make up only about 7.6% of the population."

"For every death, at least five members of the armed forces were hospitalised for attempting to take their life."

The Franchise's picture

Literally the first thought that came to mind when I read the title of this was, "We've invaded countries for less (or equal)"..... how sad.

tmosley's picture

I knew that had happened in Iraq, but I never heard anything like that about Afghanistan.

Cognitive Dissonance's picture

Venezuela also talked about dropping the dollar but then backed down. That was back when we were hearing how terrible they were. When they backed down, we did as well with our propaganda.

Anarchist's picture

Venezuela is many years away from being able to repudiate dollars. The cost of transporting Venezuelan sour crude to China is too high at this point in time. Crude needs to be much higher before it is cost effective. The risk of the US interveining in Venezuela to bugger up their plans also limits their plans.

Jason T's picture

When one begins to really understand history and money, this is a no brainer. We didnt' go to Vietnam, under a false flag attack, to stop communism either.

Wars are faught for monetary system suppremacy.  No self sufficient nation state is allowed to exist under imperialistic empires that seek to control the world..

Chump's picture

My Google-fu is weak.  I'm having trouble finding any info about either country repudiating the $.

Crummy's picture

U.N. to let Iraq sell oil for euros, not dollars
Iran stops selling oil in U.S. dollars

Old news as far as petrol dollars are concerned. But now they're talking about cutting it out completely as even as a reserve.

Chump's picture

Ah, so this isn't even the first time Iran has done this.  Thanks for the Iraq link.

I wish this party would go ahead and get started already.

Crummy's picture

Which party is that? The one where we drape sack cloth over the sun and dance with the undead on the blood and bones of our decendents?


Yeah, that one's gonna be super kewl.

Chump's picture

Yep, that one, hence the facetious use of "party."  Although, I will be drinking heavily when it all pops off initially, so there's that I guess.

DosZap's picture


No, the one where we wait, and then you get to go to that party.........

IRAN, and it's leaders are religious fanatics.The Arabs do not want the Persians with nukes,and with good reason.

The Iranian people are good people, their Theocratic blood cult leadership,is another story.

Cathartes Aura's picture

The amrkn people are good people, their Theocratic, Usurious blood cult leadership,is another story.

fixed that for you DZ.

ivant's picture

Afghanistan also provides a great trade route. As was well mentioned, its a damn powerhouse when it comes to opium :D. I am not 100% sure as to why Iran is openly agressive. There has to be a play behind the scenes. They aren't that stupid.