Can the United States and the European Union apply sanctions on Iran to curb its nuclear program without boosting oil prices and undermining economies in Asia as well as the West? The answer is particularly critical for Asia because it is has to bear the brunt of the looming sanctions.
China, India, Japan and South Korea must make an unwelcome choice between their energy security and support for international efforts to prevent the spread of nuclear weapons.
In doing so, they have to factor in the impact of their choices on price of oil. Brent crude oil, an international benchmark, has recently traded at over $123 a barrel for April settlement, up from $107 a barrel at the start of the year, but below the record high of $147 set in mid-2008.