Hey! What is going on with Iran?
To the extent that the media and the public is almost myopically focused on the Russian invasion of Ukraine, we are distracted from other matters. It would appear that the “fog of war” drifts over other issues in other parts of the world. Like Iran. What is happening there?
We should recall that President Biden has promised to re-establish the old Iranian Nuclear Deal – or at least a revised edition. That – in and of itself – is a concern. The original deal was bad enough, but the demands of the Iranian negotiators are even worse than before.
Still, the Biden administration is plodding forward to get a deal – which is looking more like a face saver for Biden even if that means more concessions to the mullahs in Tehran. And it appears that such a deal may be near.
One of the demands from Iran is the removal of sanctions – preferably before a final deal is struck. That would be stupidity to the point of malfeasance by the Biden administration. But unfortunately, that does not preclude acquiescence to Iran’s demands.
But why would Biden even consider such a condition?
Weeell … it has to do with oil, the Russian invasion of Ukraine and Biden’s policies of reducing domestic oil production – such as shutting down the Keystone Pipeline, banning exploration of federal lands, limiting drilling approvals, etc.
All those actions have resulted in a drop in domestic production. It shifted the United States from an oil exporting nation to an oil purchasing nation. And guess from whom we purchase seven percent of our oil. If you guessed Russia, give yourself a pat on the back.
After having successfully withdrawn on dependency on foreign oil – although we do purchase a small amount – we still had surpluses. We were now buying from Russia. We were now indirectly helping Putin finance his invasion of Ukraine.
Our shortfall in oil meant that we had to pay the price on the open market – and inflationary price. Pushed partly by American demand, the crude oil prices rise – and so do the gasoline prices at the pump rise – and so does virtually everything in which gasoline plays a role. That means just about everything from apples to automobiles.
Biden has been trying to get other producers in the Middle East –and even Russia – to pump more to reduce the price America pays for foreign oil. Now think for a moment. What would make Putin increase production so that the United States can have cheaper gas and he could have reduced income?
Now get ready for the closer. That is where Iran comes in. One of the points of discussion with Iran is that THEY increase production and sell oil to the United States in return for the elimination of sanctions – all or some.
So, rather than roll back his policies restricting domestic consumption – and piss off the radicals in his Democratic Party – Biden seems to think it wiser to shift our dependency from one adversary to another. And the entire reason for this unholy deal is a hope that reduced oil prices will slow the inflation and save the Democrats’ posterior in the 2022 midterm elections.
If Biden were to increase American production and prices would fall. That would be a serious blow to Putin since he needs high oil prices to keep his war going – and to keep the entire Russian economy from collapsing.
Biden seems willing to trade off sanctions on a terrorist state so that he does not have to increase American production. Biden’s main concern is that the American voters do not figure out this bit of political skullduggery.
So, there ‘tis.