Iran Sanctions Could Collapse Greek Economy

Due to Greek government’s current financial problems Greek oil companies are finding it hard to get supplies, at least on credit.

Iran has stepped up to the plate and is now Greece’s biggest supplier of crude oil.

The sanctions that France and the EU want to impose of Iran could cause extreme problems in Greece if France and the other countries which are calling for tougher sanctions do not step in as guarantor for Greece’s oil invoices.

Reuters Reports

(Reuters) – Greece is relying on Iran for most of its oil as traders pull the plug on supplies and banks refuse to provide financing for fear that Athens will default on its debt.

Traders said Greece has turned to Iran as the supplier of last resort despite rising pressure from Washington and Brussels to stifle trade as part of a campaign against Tehran’s nuclear program.

The near paralysis of oil dealings with Greece, which has four refineries, shows how trade in Europe could stall due to a breakdown in trust caused by the euro zone debt crisis, which is threatening to spread to further countries.

“Companies like us cannot deal with them. There is too much risk. Maybe independent traders are more geared up for that,” said a trader with a major international oil company.

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