The US has frozen Iranian government assets (good reason to keep your phyzz stored in your own vaults, Chavez style, rather than in the basement of the NY Fed, German style), so Iran responded today by cutting off the flow of sweet Persian crude to Europe. That should help improve the PIIGS economies.
Iranian lawmakers vowed Tuesday to ban crude oil exports to European nations, a day after US officials announced new sanctions aimed at disrupting financial transactions by Iran's central bank and other institutions.
REUTERS - Iran castigated its U.S. adversary on Tuesday over new financial measures to disrupt Iranian commerce, and a default on payment for rice purchases highlighted the encroachment of sanctions on the staples of everyday life.
Lawmakers in Tehran vowed to ban crude exports to European countries even before an EU oil embargo takes effect.
The U.S. sanctions, targeting Iran's central bank and giving U.S. banks new powers to freeze Iranian government assets, were the latest in a tightening web of international measures aimed at forcing the Islamic Republic to scrap sensitive nuclear work.