- Trump Administration put their credibility on the line by taking a hard line on Iranian oil exports, pledging to collapse them to zero.
- Iranian officials matched the rhetoric by promising to close the Straits of Hormuz entirely to oil traffic. A third of world’s traded oil production transit through that choke-point.
- Assurances of ramped-up oil production from Saudi Arabia and Opec appear as firm as a wet noodle.
U.S. taking a hard line on Iran oil exports
Over the Easter weekend we’ve seen an escalation of Trump Administration’s rhetoric toward Iran. On Monday, 22 April, State Secretary Pompeo issued an official statement pledging that after their expiry on May 2, the U.S. would not renew any of the waivers enabling Iran to export crude oil. Iran’s oil exports have already dwindled from 2.5 million barrels per day last April to around 1 million barrels, and the official U.S. policy is to bring Iranian oil exports to zero.
In taking the hard line against Iran, the Trump administration has put its credibility on the line. Secretary Pompeo followed up the official announcement on twitter, stating that, “maximum pressure” means maximum pressure. Trump backed him up promising “full sanctions…”