Is the U.S. financial embargo on Iran bearing fruit?

By Rob Janicki
Has the latest Obama administration financial banking embargo initiative against Iran already begun to see results?  As the saying goes, even a blind squirrel will find the occasional acorn.  Has the Obama administration found its acorn? 

[...]  Reports from Iran say the nation's currency has slumped to a record low against the U.S. dollar, two days after U.S. President Barack Obama signed into law new sanctions that could affect Iran's central bank and financial system.

Traders said Monday the exchange rate dipped to around 17,000 rials to the dollar, which is about a 10 percent slide from Thursday's exchange rate.  [...]

The importance of the widening of the exchange rate between the U.S. dollar and the Iranian Rial cannot be overestimated.  It puts tremendous pressure on Iran's oil revenues going forward, since oil on the world market is denominated in U.S. dollars.  It's these U.S. dollars in oil revenues that continue to support Iran's nuclear endeavors.  Any reduction in oil revenues will slow down Iran's nuclear progress, as they will not be able to make associated nuclear equipment purchases on the world market at their present rate.

[...]  The new U.S. sanctions will target financial institutions that deal with Iran's central bank, and if fully implemented could affect Iran's ability to sell oil on international markets. The step is part of a push to hamper Tehran's ability to finance its nuclear and missile programs.  [...]

The financial embargo on Iran may spread further to a European ban on Iranian oil imports.

[...]  The European Union is expected to consider additional sanctions later this month, possibly including an embargo on Iranian oil imports.  [...]

With the foregoing conditions in place and the embargo of Iranian oil being seriously considered, it should come as no surprise to anyone, that Iran is conducting naval exercises in the Persian Gulf and threatening to block the Straits of Hormuz.  Iran is playing a game of chicken with the U.S. and its NATO allies.  It will be interesting to follow this activity to see which side blinks first.  Will the U.S. and its NATO allies back off out of fear of actual military confrontation or will the allies accept the ultimate possibility of limited military engagement with Iran to force Iran to halt their nuclear ambitions and deconstruct their nuclear infrastructure?

Will these financial and possible military actions against Iran have an impact upon the 2012 presidential election?  Will this be Obama's political rallying point to illustrate and solidify his foreign relations bona fides and thus his re-election for a second term?  These questions and more will be answered as November 6, 2012, rolls around.