In 2000, Saddam Hussein insisted Iraq's oil be sold for Euros. Since Iraq sits on one quarter of all the world's oil, Saudi Arabia, in order to prevent a major decrease in oil market share would have certainly abandoned the US Dollar for the Euro as the exchange currency for all oil transactions.
Citing Saddam's weapons of mass destruction (WMD)'s, the US took him and his government out. If we had not, the US Dollar would have crashed and our economy would have collapsed.
Last month, Ahmadinejad ordered that Iran change the US Dollar with the Euro for all oil sales, after his earlier call for the OPEC nations to do the same.
Now our attention is on Ahmadinejad's nuclear weapons program and anti-Israeli ambitions,... starting to sound familiar?
In 1979 after the Shah was overthrown, the US sanctioned Iran by prohibiting US companies from any involvement with Iran's petroleum development and disallowing any trade with or investment in Iran by US citizens.
In 2000, the US backed down and allowed US citizens to purchase carpets and certain food products from Iran.
Conservatives have been attempting to influence President Obama to ask the UN for more sanctions which would no doubt include stopping gasoline sales to Iran. Although sitting on the second largest pool of crude oil in the world, Iran has had a continuous problem of supplying its own gasoline requirement, due to a lack of oil refineries. "No problem!" says China, who last month agreed to help Iran develop the necessary oil refineries.
Iran is rapidly becoming a major supplier of oil and natural gas to China, India, and Japan. The more oil they buy from Iran, the more Saudi Arabia will lose market share, unless they begin selling oil in exchange for Euros instead of the US Dollar.
In addition, because Iran sits strategically on the north side of the Persian Gulf and across the Strait of Hormuz, giving Ahmadinejad the opportunity to threaten Saudi Arabian, Kuwaiti, Iraqi and United Arab Emirate oil fields and the ability to stop their transportation of half of the world's oil exports, those OPEC nations have no choice but to join him.
Sanctions will not stop Ahmadinejad. For that matter, bombing his nuclear facilities won't either. He has to be taken out. He's Saddam Hussein all over again, only this time with an obsession with killing Jews and ushering in his messiah, the 12th Imam.
Don't expect Obama to take him out. Expect Israel to take him out. If Israel delivers to Iran as much as a firecracker the Arab nations will rage and the left will 'boo' Israel. You can then expect Putin to send his military to fight with the Arabs against Israel. Putin needs control of the world's oil in order to rebuild the Superpower Soviet Union. He knows he will be handed the control of the world's oil if he hands Israel over to the Arabs.
Now go read Ezekiel Chapters 38 & 39. Sanctions won't stop Armegeddon.