Matt Badiali in Politico: Trump’s Sanctions on Iran, Gas Prices
U.S. Sanctions on Iran May Result in Increased Prices at the Pump…
August, 7, 2018: An article was published today on Politico by Kelsey Tamborrino in which I had the pleasure of being quoted, and while that is an honor and I thank Kelsey tremendously, I want to point out that the subject matter she covers is extremely important in the oil industry right now.
Tomorrow, the first batch of Iran sanctions are being re-imposed. These sanctions target a range of economic sectors, automobiles, gold, steel and other key metals. After 90 days, a heftier tranche of sanctions on Iran’s oil industry is set to go back into effect.
I believe that this is the beginning of what could be an ugly period for oil prices. These sanctions are going to mean ugly gas prices at the tank. Tomorrow, I have an interview with Cheddar on the Iran sanctions and what exactly they will mean for gas prices – I will follow up with a post recapping the conversation. For now, let’s dive into Politico’s coverage on the issue.
Does the world have enough oil to support the demand if 2.5 million barrels of Iranian petroleum is blocked by U.S. sanctions? The sanctions, set to resume in November, will actually start coming into effect as soon as August 8, 2018.
Under normal circumstances, taking Iran out of the petroleum export picture would typically blow the international oil market. Petroleum powerhouse Venezuela is imploding. Saudi Arabia is producing as much as it can possibly squeeze out. International oil demand is rising.
President Trump’s sanctions on Iran may remove the slack in the oil market, so any other disruptions in oil supply will send gasoline prices even higher – which is not something you want before elections. Who will everyone blame? – Trump.
Read the Politico’s full coverage on Trump’s Iran sanctions and the effects on gas prices, and be sure to check back in tomorrow for a recap of my live interview with Cheddar when sanctions are imposed tomorrow!