Iran nuke issue could flare up

Iran faces an unprecedented test this year, because tensions between the Islamic republic and the West show no signs of easing in the foreseeable future.

Though at the end of 2011 Iran proposed restarting talks over its controversial nuclear program with the United States, Russia, China, Britain, France and Germany, political trust between Iran and the West has exhausted and they are caught in a "prisoner's dilemma". Besides, the likelihood of Iran returning to the negotiation table despite the mounting Western pressure is slim.

On Dec 31, 2011, US President Barack Obama signed into law tough new sanctions targeting Iran's central bank and financial sector in a bid to cripple Iran's oil revenue. Since the Iranian central bank is in charge of settling the accounts of most of the country's oil exports, the new sanctions, if implemented strictly, will cut many refineries off their crude sources in Iran.