How Oil Sanctions Against Iran Impact Energy Stocks
NEW YORK (Trefis) -- Crude oil is arguably the most important commodity in the world today. All eyes are on crude oil prices and oil's dynamics because no country can satisfy its domestic oil demand independently and because countries rely heavily on oil for industrial and retail uses.
According to the International Energy Agency, at present price levels, the world's oil import bill could reach as high as $2 trillion in 2012, which would be near 3.3% of global GDP of almost $60 trillion. Let's look at how inflated oil prices can impact some of the oil-and-gas and energy companies like Chesapeake Energy (CHK) , Exxon Mobil (XOM) , Baker Hughes (BHI) and Halliburton (HAL) .
Iran's effort to enrich nuclear fuel hasn't been accepted positively by western nations, especially in the U.S. As a result, to paralyze the Iranian economy and tumble their nuclear ambitions, several countries led by Europe and the U.S. have leveled sanctions against Iranian oil. U.S. President Obama has been scouting for and endorsing alternative resources for oil and after consultation with major oil exporters has decided to raise the sanctions against Iran oil imports.