US Aims to Completely Cut Iran’s Oil Exports Without Spike in Oil Prices
Brian Hook, head of the “Iran Action Group,” has deemed the maximum pressure strategy on Iran as successful, stating that Washington will continue with this approach while considering the interests of its allies and global oil prices. He called the ultimate goal the complete cessation of Iran’s oil exports.
Brian Hook, head of the “Iran Action Group” at the US State Department, emphasized on Wednesday, November 7, that the United States is determined to reduce Iran’s oil exports to zero by applying maximum economic pressure without raising oil prices. Hook stated at a press briefing: “We have been very careful about applying maximum economic pressure on Iran without raising oil prices, and we have done this successfully.”
He emphasized that the US will continue with this approach, however, Washington does not intend to harm its “friends and allies” through the maximum pressure strategy or cause a global increase in oil prices. Hook added that America has managed to balance these two matters “very well.”
US sanctions against Iran’s oil, gas, and shipping industries went into effect on Monday, November 5. Washington has temporarily exempted China, India, South Korea, Taiwan, Japan, Greece, Italy, and Turkey from Iran oil sanctions.
US officials have not disclosed details of bilateral agreements reached with these countries regarding exemptions from Iran oil sanctions. Brian Hook also refrained from disclosing details on this matter during his press briefing.
According to Reuters, Iran’s oil exports in April of this year, before the announcement of the US withdrawal from the nuclear deal, reached 2.8 million barrels per day. After US President Donald Trump announced on May 8 the country’s withdrawal from the JCPOA and announced new sanctions against Tehran, Iran’s oil exports have dropped to 1.8 million barrels per day.
Reuters published these figures citing reports from the reputable consulting firm “Wood Mackenzie.”
US Secretary of State Mike Pompeo also stated one day before the second round of sanctions against Iran went into effect, in a televised interview with an American news network, that more than one million barrels of Iran’s oil exports have been reduced.
Oil prices in global markets reached above $85 per barrel in October due to fears of a sharp decline in Iran’s exports and increased demand, however, prices subsequently fell again. Iran is the third largest oil producer in OPEC.
When asked about what goal the Trump administration is pursuing in reducing Iran’s oil exports over the next six months, Brian Hook replied: “I cannot tell you what our goal is, but we have a goal.” He added that America’s ultimate goal is to completely stop Iran’s oil exports.
According to Hook, Washington expects global oil supply in 2019 to exceed demand, and in this way, this situation will place America in a better position to demand that Iran’s oil importers reduce their purchases from the country to zero.
The head of the Iran Action Group emphasized that Washington’s strategy for applying maximum pressure on Iran also targets deposit accounts where Iran’s oil revenues are stored, and the US Treasury Department will carefully monitor to prevent these accounts from being used for smuggling goods.
Source: DW
