The Gas Weapon

Iran may produce more oil than most countries in the world, but it has a very weak underbelly that could make it quite susceptible. It lacks refining capabilities, and must import 40% of its gasoline from outsider refiners.

Legislation is circulating in Congress, backed by the American Israel Public Affairs Committee, that would punish oil traders and transporters that sell refined gasoline to Iran. While the Islamic Republic is one of the world's leading exporters of crude petroleum, the country lacks the refining capacity to turn an estimated 40% of its crude oil into gasoline. Earlier this year, the country saw gas riots after President Ahmadinejad tried to impose gasoline rationing.

American policy will likely hinge on the results of a Department of Energy study examining the effect of such a sanctions regime on the Iranians and world oil markets. It is a softer policy version of a plan to embargo the Iranian import of refined gasoline. An embargo, however would likely push the price of gasoline in America even higher and would plunge America into an open war with Iran.

Sanctions alone will not get Iran to stop its nuclear program, but if sufficient pressure is brought to bear against the Iranian energy markets, it could force change. The Iranians are far more susceptible to energy prices than many other countries, including the US, which is absorbing the highest prices for oil that the nation has seen.