The declaration by Iran’s first vice president, Mohammad-Reza Rahimi, came as President Obama prepares to sign legislation that, if fully implemented, could substantially reduce Iran’s oil revenue in a bid to deter it from pursuing a nuclear weapons program.
Prior to the latest move, the administration had been laying the groundwork to attempt to cut off Iran from global energy markets without raising the price of gasoline or alienating some of Washington’s closest allies.
Apparently fearful of the expanded sanctions’ possible impact on the already-stressed economy of Iran, the world’s third-largest energy exporter, Mr. Rahimi said, “If they impose sanctions on Iran’s oil exports, then even one drop of oil cannot flow from the Strait of Hormuz,” according to Iran’s official news agency. Iran just began a 10-day naval exercise in the area.
In recent interviews, Obama administration officials have said that the United States has developed a plan to keep the strait open in the event of a crisis. In Hawaii, where President Obama is vacationing, a White House spokesman said there would be no comment on the Iranian threat to close the strait. That seemed in keeping with what administration officials say has been an effort to lower the level of angry exchanges, partly to avoid giving the Iranian government the satisfaction of a response and partly to avoid spooking financial markets.
But the energy sanctions carry the risk of confrontation, as well as economic disruption, given the unpredictability of the Iranian response. Some administration officials believe that a plot to assassinate the Saudi ambassador to the United States — which Washington alleges received funding from the Quds Force, part of the Iranian Revolutionary Guards Corps — was in response to American and other international sanctions.
Merely uttering the threat appeared to be part of an Iranian effort to demonstrate its ability to cause a spike in oil prices, thus slowing the United States economy, and to warn American trading partners that joining the new sanctions, which the Senate passed by a rare 100-0 vote, would come at a high cost.
Oil prices rose above $100 a barrel in trading after the threat was issued, though it was unclear how much that could be attributed to investors’ concern that confrontation in the Persian Gulf could disrupt oil flows.
The new punitive measures, part of a bill financing the military, would significantly escalate American sanctions against Iran. They come just a month and a half after the International Atomic Energy Agency published a report that for the first time laid out its evidence that Iran may be secretly working to design a nuclear warhead, despite the country’s repeated denials.
In the wake of the I.A.E.A. report and a November attack on the British Embassy in Tehran, the European Union is also contemplating strict new sanctions, such as an embargo on Iranian oil.
For five years, the United States has implemented increasingly severe sanctions in an attempt to force Iran’s leaders to reconsider the suspected nuclear weapons program, and answer a growing list of questions from the I.A.E.A. But it has deliberately stopped short of targeting oil exports, which finance as much as half of Iran’s budget.
Now, with its hand forced by Congress, the administration is preparing to take that final step, penalizing foreign corporations that do business with Iran’s central bank, which collects payment for most of the country’s energy exports.
The sanction would effectively make it difficult for those who do business with Iran’s central bank to also conduct financial transactions with the United States. The step was so severe that one of President Obama’s top national security aides said two months ago that it was “a last resort.” The administration raced to put some loopholes in the final legislation so that it could reduce the impact on close allies who have signed on to pressuring Iran.
The legislation allows President Obama to waive sanctions if they cause the price of oil to rise or threaten national security.
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Tuesday, December 27, 2011
Iran Threatens to Block Oil in Reply to Sanctions
Senate Democrat Ben Nelson Won’t Run in 2012 - Bloomberg
Democratic Senator Ben Nelson of Nebraska announced today he won’t seek re-election next year, a retirement hurting his party’s bid to keep its majority in the chamber.
“It is time to move on,” Nelson, 70, said in a statement posted on his Senate website. He said he’s looking for “new ways to serve our state and nation.”
Nelson, whose home state is predominantly Republican, is the seventh member of the Senate’s Democratic caucus to decide to retire ahead of November elections in which his party is defending a 53-47 majority in the chamber. A net gain of four seats by Republicans would ensure them Senate control, regardless of the outcome of the presidential race.
A former two-term governor and state insurance commissioner, Nelson was the Democrat best able to defend the seat, said Jennifer Duffy, a senior editor of the non-partisan Cook Political Report.
“There is no obvious Democratic replacement to Nelson,” she said in a telephone interview. “I don’t see a path to victory for Democrats in Nebraska,” so Nelson’s retirement “puts Republicans one seat closer to a majority,” Duffy said. With Nelson in the race, Republicans “were going to have to fight” to defeat him.
‘Cornhusker Kickback’
Not always a reliable vote for Democrats, Nelson secured a concession for Nebraska in return for supporting President Barack Obama’s health-care legislation over a crucial procedural hurdle in 2009. Republicans derided the provision exempting Nebraska from paying for expanded Medicaid coverage as the “Cornhusker Kickback.” Nelson later asked that all states be treated equally.
A recent Republican political ad accused Nelson of accepting a bribe for his vote for the health-care legislation.
In a statement, Obama called Nelson’s bipartisanship “a trait far too often overlooked in today’s politics.”
Senator Patty Murray of Washington state, chairwoman of the Democratic Senatorial Campaign Committee, played down the impact of Nelson’s stepping down.
“We remain confident that we will hold the majority next year because incumbents have built strong campaign organizations in their states,” Murray said in a statement. “Republicans will continue to have their hands full with a very divisive primary” in Nebraska, “which will provide an opportunity for Democrats to remain competitive.”
Three Republicans
So far, three Republicans, state Attorney General Jon Bruning, state Treasurer Don Stenberg and Deb Fischer, a state senator, are seeking the Republican U.S. Senate nomination.
John Heineman, Nebraska’s Republican governor, told reporters earlier this month that he rebuffed overtures by party officials in Washington, including Senate Minority Leader Mitch McConnell of Kentucky, about running for the seat.
“I understand their arguments. They’re persuasive. But I also indicated that it would take a lot to change my mind,” Heineman was quoted as saying by the Omaha World-Herald.
Possible Democratic candidates identified today by the newspaper include former Lieutenant Governor Kim Robak and Steve Lathrop, a state senator.
Bob Kerrey
Bob Kerrey, a former Democratic senator from Nebraska, had also been mentioned on political blogs as a possible candidate if Nelson retired. Kerrey, who recently retired as president of the New School in New York, told Nebraska.Watchdog.org on Dec. 9 that running for the Senate is “not what I would consider being my logical career path.”
Duffy said that while Kerrey, who held the seat from 1989-2000, “in theory” is “a really good candidate, in practice, I think it would be tough” because “it’s been a really long time since Bob Kerrey has been on the ballot.”
Democrats, who must defend 23 seats next year, have fewer opportunities to make gains because only 10 Republican incumbents are seeking re-election.
Two Republican senators, Kay Bailey Hutchison of Texas and Jon Kyl of Arizona, are retiring. A third, former Nevada Senator John Ensign, resigned and his appointed successor, Dean Heller, faces a potentially strong challenge from Democratic Representative Shelley Berkley.
Swing States
Nevada is one opportunity for Democrats because it’s “a swing state” where “the presidential race is going to have an impact over the outcome,” Duffy said.
Another state where presidential politics could affect the outcome is Virginia, she said. There, two former governors, Democrat Tim Kaine and Republican George Allen, are vying for the seat being vacated by Democrat Jim Webb, who is retiring. Webb’s defeat of Allen in 2006 was the final pickup that gave Democrats control of the Senate.
The other retiring Democratic senators are Daniel Akaka of Hawaii, Kent Conrad of North Dakota, Herb Kohl of Wisconsin and Jeff Bingaman of New Mexico. Connecticut independent Joseph Lieberman, who caucuses with the Democrats, also isn’t seeking re-election.
To contact the reporter on this story: James Rowley in Washington at jarowley@bloomberg.net
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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Iran Threatens to Block Oil if West Sets New Sanctions
Iran issued a blunt warning on Tuesday that it would block the Strait of Hormuz, the world’s most important oil transit point, if Western powers attempt to impose an embargo on Iranian petroleum exports in their campaign to isolate the country over its suspect nuclear energy program.
Sears to close more stores as holiday sales slump - Yahoo! News
(Reuters) - Sears Holdings Corp will close up to 120 stores in its Kmart and namesake chains, blaming poor sales of consumer electronics so far this holiday season and saying it would focus its energy on its better performing stores.
Sales at Sears Holdings, whose chairman and top shareholder is hedge fund manager Edward Lampert, have fallen every year since it was formed through the merger of Sears and Kmart in 2005.
And so far this holiday season, the drop has continued. Same-store sales at Kmart were down 4.4 percent in the current quarter through Christmas Day, and down 6 percent at Sears' U.S. stores. Companywide, they were down 5.2 percent, the company said on Tuesday.
Sears said that typically, it would keep "marginally performing" stores open to give them time to improve, but "we no longer believe that to be the appropriate action in this environment."
The store closings follow its announcement last quarter it would shutter 10 stores. Kmart and Sears have a combined 2,177 U.S. full service locations and another 500 in Canada.
Sears blamed poor consumer electronics sales in a tough economic environment "especially for big-ticket items" for more than half of the decline in its namesake chain's domestic same-store sales.
It even reported lower layaway sales, which are designed to allow lower income shoppers to pay for items in installments.
Sears Holdings said the lower sales and margin pressure would lead to adjusted fourth-quarter earnings before interest, debt and amortization of less than half of the year-ago quarter's $933 million figure.
Last month, Sears reported a much wider than expected quarterly loss as higher markdowns and pricing pressures in appliances squeezed margins.
The retailer, home to brands including Craftsman tools and Kenmore appliances, expects to earn $140 million to $170 million by selling of inventory in affected stores and selling or subleasing store space.
Sears also expects to record a non-cash charge of $1.6 billion to $1.8 billion in the fourth quarter related to a valuation allowance on certain deferred tax assets.
(Reporting by Phil Wahba in New York, and Supantha Mukherjee in Bangalore; Editing by Anil D'Silva, Roshni Menon, Dave Zimmerman)
Drew Brees Passes Dan Marino, And Tom Brady Probably Will, Too
Drew Brees Passes Dan Marino, And Tom Brady Probably Will, Too
Dec 27 8:01a by Matt Watson
Read More: Tom Brady (QB - NEP), Drew Brees (QB - NOS), Atlanta Falcons, New Orleans Saints, New England Patriots
Drew Brees broke Dan Marino's 27-year-old NFL record for the most passing yards in a season in the final minutes of Monday's win over the Falcons. Brees has now thrown for 5,087 yards, two more than Marino's old mark. Considering the Saints still have much to play for -- a Saints' win coupled with a 49ers' loss would give New Orleans a first-round bye in the playoffs -- Brees will continue adding to that total in Week 17.
VIDEO: Drew Brees Breaks Dan Marino's Record
Follow @sbnation on Twitter | Like SB Nation on Facebook | Sign up for our NewsletterBut while Brees is the first player to surpass Marino this season, there's a good chance he won't be the last. Tom Brady, who's averaging 326.4 yards per game, enters the final week of the season with 4,897 yards, just 187 shy of matching Marino's old mark. For context, Brady has thrown for fewer than 226 yards just once all season, and in that game he still threw for 198.
In fact, he's already thrown for more yards in 15 games than he did over the course of a full season in either of his MVP seasons in 2007 and 2010. And when you include his three rushing scores this year, he's accounted for more touchdowns (39) than he did last year (37). In any other year, he'd be the leading contender for his third MVP. Instead, Aaron Rodgers and Brees have helped render him something of an afterthought for the first time in a decade.
Like Brees, Brady has a lot to play for: one more win for the Patriots will clinch home-field advantage through the playoffs. And while he looks like a solid bet to overtake Marino in the season finale against the Bills, there's also a chance -- a slim chance, but a chance nonetheless -- that he overtakes Brees, as well.
Granted, doing so would require throwing for 190 more yards than whatever Brees manages. It's almost silly to think it could happen, but this is a guy who threw for 517 yards in Week 1, so you can't entirely rule it out -- especially considering the Patriots' secondary had Brady playing from behind for much of Week 15 while the Bills put up 40 points on Denver's vaunted defense. If we've learned anything during the Year of the Quarterback, it's that anything can happen.
For more on the Saints, visit Saints blog Canal Street Chronicles. For the latest on the Patriots, check out Patriots blog Pats Pulpit.
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