As efforts continue to impose sanctions on Iran ([1], [2]), I thought it would be helpful to discuss the possible implications of these developments for oil-consuming countries.
The most likely outcome of an embargo on oil purchased from Iran is that the countries participating in the embargo buy less oil from Iran while other countries not participating in the embargo buy more oil from Iran ([1], [2]). While this would produce some dislocations, if total world oil production doesn't change, it would have little effect on either Iran or oil-consuming countries, and would basically be a symbolic gesture.
