Oil price and sanction..

Did you know Ron 97 has increase by 10 cents  and now costs RM2.90?  I bet you do..

Did you know why?  Due to higher oil price touching USD128 per barrel last month.  Some of you may know this.. 

Did you know what contributed to the increase in oil price?  Most of it due to fear of future supply from the middle east as a result of Iran nuclear issues and the sanction imposed.  Some of you may have read this..

How is this sanction implemented?  This is what I've read...it seems ships or containers will need insurance to cover the cargo they carry.  So currently most insurance companies that insure cargo such as oil are from western countries i.e. in Europe and US.  With Iran nuclear issue, these insurance companies have imposed restriction that any ship carrying oil purchased from Iran will not be covered by them.  So these ships that carried oil from Iran will have to seek insurance co's that will insure their cargo.  Unfortunately there aren't many or maybe none.  So countries that  have purchased oil from Iran such as Japan, India, China etc will not only face difficulty in finding ships that are willing to carry the cargo, but also insurance co that will insure the cargo.  Of course these countries will then need to seek oil from other producing countries which will have to go through new arrangements and dealings.  With all the hassle..wouldn't it incur more costs?

And Iran, knowing that they are being stabbed by the western countries left, right and center..wouldn't they put on hold their oil production and manage the predicament that their in?  

With all the arm twisting that the western countries are doing on Iran.. were they expecting Iran to keep quiet?

Unfortunately we know due to all these, we are paying the price...