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News Of Economy

U.S. ordered energy firms and bank to leave Iran

April 17, 2012

Battle between US and Iran is not soothing down. US is trying to isolate the Islamic Republic over its atomic program as it urged to all European banks and energy firms to sum up their business with Iran. US sent a blunt message to their European supporting nation that reputations are at stake if they do so. US, has cleared its intention to thwart Iranian strife to develop nuclear expertise. United Nation has already implemented the sanction on Iran and now US is impeding other prosper nation to give any kind of financial advantage to Iran. If European bank implements U.S. urge then it will adversely affect the Iranian business because European banks are major financiers in Islamic nation oil refineries. After US displeasure over investment in Iran, all major banks and oil drillers are pulling their money out from the Iranian economy. French bank, Societe General has stop financing for a $5 billion project to develop part of Iran’s massive South Pars gas field. Oil giant Statoil is also protecting U.S. interests, and leaving its investment in the Azar oilfield. Other European big oil players are also bowing in front of American decision as Royal Dutch Shell, Eni and Total are renouncing its assets in Iran and latest political concerns forced companies to change their investment plans. The U.S. Treasury’s top anti-terrorism official Stuart Levey said The world’s top financial institutions and corporations are re-evaluating their business with Iran because they are worried about the risk and their reputations Iran has confirmed that under US pressure multinational companies are leaving their hefty profit and reluctant to invest in the country. Akbar Torkan, head of Iran’s Pars Oil and Gas Company, said No European bank is ready to prepare new financing for us. The U.S. is putting pressure on all European banks Amid US sanctions, Iran is fighting back with plans to set up an overseas investment fund in Bahrain or Dubai to help finance South Pars. Iran said that despite US’s despotic attitude, Iran have long queue of foreign investors, those who are keen to invent in its oil and gas reserves. On paper, the National Iranian Oil Company has contracts of $40 billion worth. Although UN and US have implemented financial sanctions over Iranian economy to thwart nation to get nuclear access yet it will be difficult to stop investors from lucrative Iranian oil field. Apart from it, US and Europe are fighting for the rising oil prices, which has already inundated many market leaders’ profits, that will touch new heights and in all phases US will be a biggest looser. Image: lazerbrody Via: Reuters

News Of Economy

UN warns of a threat to political stability and worldwide unrest due to hiking food prices

January 29, 2012

Though it has always been stated that the primary needs of man are food, clothing and shelter, the most essential thing of these necessary for human survival and existence is food without which life would almost be impossible. This fact has been proved by the figures of death recorded during famines which sweep away the entire population of the land it strikes. The food packets being dropped during natural calamities are another proof that denotes its importance. Taking these factors in account, it becomes obvious that food is an inevitable and necessary factor required by the rich and poor alike for satiating one of the basic human requirements of hunger for survival. However, when the prices of such a basic and essentially required commodity starts increasing, conflict amongst the masses is predictable. Witnessing a rise in the prices of food commodities globally, top UN officials have warned that the rising food prices worldwide can spark unrest and threaten political stability. The statement has been issued by Sir John Holmes, undersecretary general for humanitarian affairs and the UN’s emergency relief coordinator after two days of continuous riots in Egypt and other parts of the world over doubled rates of basic food commodities around the world. The prices of food commodities have escalated globally on an average by 40% in the last one year. The increasing food and fuel prices are said to have damaging effects all over the world coupled with the disaster of climate change due to global warming. Explaining this Sir John Holmes said, The security implications should also not be underestimated as food riots are already being reported across the globe. Current food price trends are likely to increase sharply both the incidence and depth of food insecurity. In addition to this, the major Asian exporters of rice such as Bangladesh, China, India, Indonesia, Burma, the Philippines and Thailand have started hoarding rice in their countries to feed the population of their countries. This has led to further food crisis fueling up the prices. The economists and environmentalists both warn that though climate change due to global warming is a burning issue, the hiking food and fuel prices are as important and damaging with a parallel time scale and have to be tackled immediately.