Assessment of Possible Sanctions (IranVNC.com)

Iran's oil reserves, among the richest in the world, still lack refining capabilities.

According to The New York Times, it is forced to import roughly 40% of its gasoline from other oil producing countries. That's about a five billion dollar economic drain and makes Iran second only to the United States -- in gasoline imports.

Britain's Prime Minister, Gordon Brown, already has asked EU ministers to consider targeting, among other things, Iran's oil and natural gas industry for further sanctions -- unless the current impasse over uranium enrichment is resolved.

U.S. officials, who have signaled willingness to accelerate a diplomatic embrace of Tehran should the nuclear talks succeed, also warn that new sanctions would cost the Islamic Republic dearly -- and hurt the people by forcing significant reductions in gasoline available at the pump.

In Washington, Congress continues to discuss the financial options -- and making sure the people of Iran know the potential economic consequences.

Charles Schumer: "The bottom line in my judgment is that Iran is very susceptible to effective economic sanctions; it's a different type country, it has always had a secular and mild tradition."

New U.S. financial penalties against Iran under consideration run the gamut from restricting gasoline exports to measures to impede Iran's shipping operations in the Persian Gulf and its banking activities worldwide.

It all is part of a complex and dangerous diplomatic game being played out in the region, with consequences that could be economically devastating for both Iran and the international community.

Pressure mounting from economic sanctions have already forced many western companies to reluctantly abandon the Iranian market.

British Petroleum, British-Dutch group Shell, and the French oil group Total have all cut ties with Iran. Furthermore, Germany's Deutsche Bank recently ended its 40-year association with Iran.

Yet, China and Russia have continued trading with Iran and, according to Deutsche Welle, have witnessed their investments double in the past year.

Diverging economic standpoints are only part of the current circumstances of nuclear talks with Iran as the world anticipates its next move.

According to The Wall Street Journal, despite high oil prices, Iran's economy is plummeting. The journal reports sources indicating an estimated 125% rise in housing prices with an annual inflation rate for food products up by 50%.

According to Reuters, Iran is currently buying more gasoline on international markets to boost stocks with imports expected to rise up to around 60,000 barrels a day by August.

Gas oil imports are also speculated to double to some 30,000 barrels a day.

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