READING: New York Times’ “Obama Finds Oil In Markets Is Sufficient To Sideline Iran”

OUR TAKE:

President Obama today cleared the way towards imposing tougher sanctions on Iran.  After months of studies on world oil production and demand, it has been decided that the world can function without oil provided by Iran. Determination of oil capacities and reserves were the final step towards enforcing the sanctions, which were approved in December.

The government of Saudi Arabia has been instrumental in this determination, promising to increase their production and distribution to countries formerly dependent on Iranian oil. Although there has been a recent shortage on oil due to disruptions in  South Sudan, Syria, Yemen, Nigeria, and the North Sea, the threat of Iran going nuclear has been the impetus behind both the Saudi’s recent offer and the United States recent claims of plentiful fuel reserves.

The availability of sufficient oil supplies is certainly a question which will have to be answered concretely in coming days;  however, the question of a nuclear Iran has been answered in detail in the past several months, both by Iran, the IAEA, and the intelligence community.

As recently as March 17th, it was reported by the New York Times that “Today, as suspicions about Iran’s nuclear ambitions have provoked tough sanctions and threats of military confrontation, top administration officials have said that Iran still has not decided to pursue a weapon, reflecting the intelligence community’s secret analysis.”

Yet, not two weeks later, the information released revealing an Iran which has no desire to possess nuclear weapon capability is seemingly forgotten.  The news of the U.S. and its allies’ readiness to impose the strict sanctions upon Iran comes two days after an announcement by the Iranian ministry of the reopening of talks with world leaders about these issues.

By enforcing these sanctions, the U.S. intends to ”sap the Iranian government of oil revenue that might go to finance the country’s nuclear program. ”

There is a serious disconnect between the lack certainty that Iran is looking to create of nuclear weapons, and announcements coming from Washington of sanction enforcement, aimed at drawing money away from Iran creating nuclear weapons.

WASHINGTON — After careful analysis of oil prices and months of negotiations, President Obama on Friday determined that there was sufficient oil in world markets to allow countries to significantly reduce their Iranian imports, clearing the way for Washington to impose severe new sanctions intended to slash Iran’s oil revenue and press Tehran to abandon its nuclear ambitions.

The White House announcement comes after months of back-channel talks to prepare the global energy market to cut Iran out — but without raising the price of gas, which would benefit Iran and imperil the economies of the United States and Europe.

Read more at: The New York Times