What Were They Thinking? US Drives Oil Prices Up With Ill-Advised Global Ban on Iranian Oil!
Last Monday, the U.S. stated that it's imposing a complete global ban on the purchase of Iranian oil, starting on May 2nd. For everyone. I'll repeat that for you so that you understand that you didn't mishear it: White House Press Secretary Sarah Sanders dully stated that Donald Trump decided to prohibit every country on our planet, without exception, from importing oil from Iran. Otherwise, all of those who are buying will be punished with sanctions.
Actually, if we look at this situation from space, from somewhere in another galaxy, as science fiction writers do, then, on such a scale and from such a perspective, the absurdity and surrealism of what is happening become obvious. Just imagine, a distant planet and inhabited by certain creatures, with hundreds of states, large and small, with different regimes and history, they trade among themselves what they can, and try to live peacefully and negotiate. But there is one state there; let's call it America, too. It isn't the most unconditionally powerful there, at least it isn't omnipotent. Then, all of a sudden, it demands from everyone, without exception, to break off trade and contracts with some medium-sized but proud country. That America literally orders and threatens. The distant planet disagrees. It advocates for freedom. But there is one country there that is against freedom for others, advocates for freedom for itself only, and views its freedom only as the right to deprive others of their freedom.
One could make a computer game, cartoon, or a science fiction thriller about the amazing life in the distant galaxy of this story. One could even introduce Spider-Man there so that he saves everyone in the name of freedom. Whom would you support in this case? Which side do you think is good and who is the villain in this story? I think that's obvious to all of us.
But if we return to our galaxy and closer to our star, to the third planet from the Sun, named Earth, then we see that exact same story being played out here as well, before our eyes, when one state, the USA, threatens everyone else, trying to command the planet. At the same time, America refers to itself, claiming that it's dissatisfied with the fact that Iran allegedly doesn't perform the previously concluded «nuclear deal», according to which it transfers its nuclear industry onto a peaceful track, in exchange for the lifting of sanctions. All of the other participants in the deal, Britain, Germany, China, Russia, and France, don't agree with America. They think that Iran is right. The IAEA, an international supervising body, has the same opinion. But there's America, pretending that it's exclusive. Forbidding everyone to buy oil from Iran is just a particular case in the general pattern.
But whom does Iran sell its oil to? Look at the diagram. China is the main buyer of Iranian oil. How does China react? China doesn't obey the United States. Here's a statement by Chinese Foreign Ministry Spokesman Geng Shuang.
Geng Shuang, Spokesman for the Chinese Ministry of Foreign Affairs: «China is against unilateral sanctions. The cooperation between China and Iran is open, transparent, and legal. It should be respected. The Chinese government will do everything to protect the legitimate interests of its companies».
South Korea and India aren't planning to stop buying Iranian oil either. But they're still waiting, hoping that Trump might make an exception for them. Japan, whose oil imports make up only 3% of Iran's oil exports, responds evasively. But for Turkey, the right to trade freely with Iran is a matter of principle.
Mevlüt Çavuşoğlu, Foreign Minister of Turkey: «Turkey is against imposing such measures. To tell which country to buy oil from instead of Iran means violating the boundaries of what is permitted».
As we see, from May 2nd, the Americans will definitely not able to reduce the entire Iranian oil trade to nothing. This is already clear. They did a stupid thing. And what is the result? At the very least, oil prices already responded with growth. The symbolic threshold of $75 per barrel of Brent was surpassed last Thursday. Now, the price is the highest since last October. Against the background of what the USA is doing with Venezuela, prices could rise much higher. Is it beneficial for anyone? Perhaps Saudi Arabia or the United Arab Emirates? Or maybe Russia? After all, every dollar added to the price of oil brings billions of dollars to our budget.
Excuse me, but there are principles. If we agree with the principle that the U.S. has the right to prohibit the whole world to buy hydrocarbons from a country, one day, that same Saudi Arabia or UAE may turn out to be that very country. Or, let's say, all of a sudden, America decides to forbid everyone to buy gas or oil from Russia. Is that okay? And why only oil, maybe something else: diamonds, wood, or grain? Or bananas or coffee from some other country. Cars from Germany. Everything from China. If we agree to this order, then where should it end? And what will our world turn into by the will of the USA? To generalize and put it simply, Trump is now against freedom, against freedom in general, against free trade in particular, against the freedom of decision-making by sovereign countries, and against the freedom to search for business partners.
America, which established itself on the cult of freedom and competition, now opposes competition and advocates only for its own exclusiveness. It won't work. This is a certain test for the world. Take the EU, which initially considered America's severance of the deal with Iran to be illegal. And now, when America goes further and tries to introduce a new world order, starting with Iran, what will Europe say? Is it ready to align itself with Washington? Where are those European principles? And does Europe have any authority in international politics?
But there's another side to American simplicity. Seeing that it's literally being driven into a corner, Iran will have to defend itself. And what if Iran unfreezes its nuclear program? After all, it was frozen in exchange for the lifting of sanctions, but now the situation is different. Definitely yes. And then what? Did the U.S. consider this option? It can't cope with North Korea and is trying to do something with Iran to its own detriment. Is it smart? It's stupid.
Interestingly, the Americans are trying to talk with Russia in the same manner. Thus, last Wednesday, U.S. ambassador to Russia Huntsman suddenly reminded the Kremlin that there are two American aircraft carriers in the Mediterranean Sea, which, according to him, each have 100,000 tons of international diplomacy. Moscow doesn't care about that American policy regarding the planet, not ambassador Huntsman, of course. It doesn't care because it can't create any respect, much less consent.
To be fair, the first nuclear submarine carrying the unmanned Poseidon system was launched last Wednesday. It's invisible to underwater radars and invulnerable to American torpedoes. We already talked about the event in Severodvinsk in detail today. Now, let me remind you that the underwater Poseidon drones are the killers of aircraft carrier groups. The U.S. doesn't have a remedy for the Poseidon. And it isn't expected to have one.
Actually, these are our thoughts about the actions of the U.S. with regard to Iran. As we see, it isn't about Iran. It's about principles.