for Iran Sanctions
Iran and the status of international sanctions on the country’s oil exports are one of the clearest indicators of the intrinsic links between U.S. oil dependence and foreign policy.
Oil prices are currently underpinned by unplanned supply outages, OPEC manipulation, geopolitical uncertainty, limited spare capacity, rising demand, and speculative buying.
The goal of the United States is to gradually restrict Iranian crude exports over time. The toughest sanctions on Iran’s oil trade, energy sector, and Central Bank will be re-imposed on November 5.
Global oil markets are contending with a number of uncertainties as U.S. gasoline prices are already 44 cents per gallon higher than year-ago levels.
The lifting of sanctions in 2016 kicked off a nasty political debate inside the country about revised contract terms and who exactly should benefit from Iran’s oil sector revival.
With international events happening at a quick pace and relationships with allies and enemies in flux, the next president will have a long list of foreign policy challenges, with major oil-producing countries as top concerns.
Although Iran has diligently reformed its petroleum contract to attract IOCs, the OPEC country is still dealing with a volatile political and economic environment that could delay and possibly undermine new and longer-term investment.
OPEC's demise has been greatly exaggerated: Venezuelan Oil Minister Eulogio Del Pino’s recent world tour of major oil capitals and the associated price bumps is proof enough that OPEC can move markets just by talking about moving markets.
Much of the energy discussion surrounding the lifting of Iranian sanctions has focused on the effects on oil prices, but Iran’s gas potential could shake up global gas markets and provide robust economic benefits for the country.
Iran has a long history of offering noncompetitive contracts to IOCs. If sanctions are removed, new contract terms are likely to draw companies back to its low-cost reserves.