By Amir Taghati
Last May, after President Trump announced the U.S. exit from the Iran nuclear deal and the reimposed sanctions, the move was called “misguided” a risk to “US national security, recklessly upending foundational partnerships with key US allies in Europe and gambling with Israel’s security.”
Oil prices were expected to rise dramatically, and U.S. allies would continue to support Iran. It was believed that Iran’s nuclear program would be resurrected, putting the entire world at risk.
So far, none of these predictions have occurred. Instead, other countries have left the deal with the Iranian regime, and oil prices have seen little variation.
The Iranian Regime funds and supports the proxies in Syria, and the terrorist organization Hezbollah in Lebanon, as well as Hamas in Gaza, the Mahdi Army in Iraq, and Shi’a extremists worldwide.
The Iran nuclear deal was limited in scope — only nuclear sanctions would be affected. It resulted in a suspension of the country’s nuclear pursuits, and increased openness regarding Iran’s stockpiles, centrifuges, and research facilities. Then-President Obama announced, “This deal offers an opportunity to move in a new direction. We should seize it.”
However, the Iranian Regime seeks to gain superiority in the Persian Gulf and continue its support of the terrorist groups that act as its proxies. Russia wants to regain a dominant role on the world stage. China wants to wrest the “superpower” title from the United States. But, as long as America remains strong politically, economically, and militarily, those plans will be derailed.
The outlook for the U.S. is optimistic. There is currently an over-abundance of oil supplies, in part due to fracking in the United States. European companies have decided not to continue to do business with Iran. According to Trump, after November 4th, the US will not do business with countries that violate the sanctions.
Iranian oil exports may drop from the 2.7 million barrels shipped in 2018 to less than one million next year. Amy Myers Jaffe, with the Council on Foreign Relations, believes that Iran may never recoup the power it once had with its oil exports. Ms. Jaffe said, “People just don’t care if they are going to lose business in Iran. People don’t feel desperate for supply.”
U.S. Secretary of State Mike Pompeo stated, “Purchases of Iranian crude will go to zero from every country or sanctions will be imposed.”
Iran continues to produce oil and is storing it in tankers in the Persian Gulf, just off the coast. Still, international purchases are conducted in U.S. dollars which only serves to reinforce President Trump’s sanctions.
Iran Regime’s President Hasan Rouhani’s economic team has proved no match for his administrations’ economic problems. Rouhani, famous for being a hypocrite said in his 2013 bid for presidency, that he held the key to the door of prosperity in Iran! Rouhani couldn’t find the lock. Nearly five years later, Iran continues in its financial crisis.