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Iran seeks euro-based oil exchange

Is the biggest threat Iran poses to the United States really its nuclear ambitions - or is it petropolitics? Last month the Iranian government quietly reaffirmed plans to create by next year a euro-denominated exchange in oil, natural gas, and other petroleum products. If successful, such an exchange could start to lap at the walls of the two existing oil exchanges - London`s International Petroleum Exchange (IPE) and the New York Mercantile Exchange (NYMEX) - both owned by American companies.

If the billions of dollars in oil sales ever got going in euros, experts say, that could dry up the demand for dollars that the heavily indebted US economy depends on, and it could mean big trouble for the US economy. It`s enough to make the Great Satan-loathing visionaries behind the Iranian regime salivate. The chances of success, however, seem quite remote - at least in the short term. Iran probably stands to gain little from its talk of establishing a petro-euro exchange except for some propaganda value, say experts in energy markets.

Still, as much as a pipe dream as the plan may be, it suggests the lengths to which Iranian leaders could go to weaken Western (and largely American) controls on the international economy, analysts say. It also hints at the integrated thinking that backs up the Iranian government`s vision. Iran continues its geopolitical play even as pressure against it mounts over its nuclear program. With international meetings planned next month to address the nuclear issue, new accusations are being made that claim to shed new light on a connection between Iran",s nuclear program and its military.