Once again, a provision of the National Defense Authorization Act is being cited by Washington as justification for a new policy position.
Listing Section 1245 of the NDAA, on Monday, President Barack Obama signed an executive order imposing a roster of new sanctions on the government of Iran, including the Central Bank of Iran.
As was reported several months ago by The New American, among the many shocking usurpations extant in the law signed by the President on New Year’s Eve, the National Defense Authorization Act greases the skids for the deployment of the American military into Iran if economic sanctions fail to persuade Mahmoud Ahmadinejad to see things our way.
While the NDAA's effect on the Constitution is all but ignored by the administration and Congress, its effect on oil prices is taken very seriously. Under applicable provisions of the new law, President Obama may punish international firms which buy oil from Iran. The President has an out, however, if he believes that the imposition of such penalties is driving up the price of crude.
The New York Times quotes an unnamed administration official who explains the importance of vigilantly protecting the stability of the volatile oil market: "We have to do it in a timely way and phased way to avoid repercussions to the oil market, and make sure the revenues to Iran are reduced."
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