Iran will struggle to sell embargoed crude - FT.com

When Ronald Reagan imposed an embargo on Iranian oil in October 1987, the market braced itself for a big price hike. But while the ban stopped the flow of 500,000 barrels a day to the US, crude prices fell from about $20 a barrel in early October of that year to less than $15 in December.
There was a simple explan­ation: instead of cutting output, Tehran re-directed oil usually sold to America to other markets.

A quarter of a century later, the energy market finds itself in a similar situation. This time, however, the combined impact of US sanctions and forthcoming European Union sanctions on Iran’s oil industry could force Tehran to cut production, potentially causing the price of oil to soar, as well as damaging the Iranian economy.

* username: rupertbu