Energy Report: Attitude Adjustment

The Biden administration is trying to win friends in Iran and influence Ayatollahs basically begging and pleading for Iran to rejoin the 2015 nuclear deal. Not only has Biden offered to call the Supreme grand poo-bah Ali Khamenei directly but his administration says it is ready to lift all sanctions that are inconsistent with the JCPOA nuclear accord. Oil traders have seen this coming and in the recent selloff had started to price in the return of Iranian oil, but I am not sure that they expected it might be this quick, assuming it happens.

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Image Source: Unsplash

Iran is already laughing off oil sanctions, exporting over 1.5 million barrels a day and rising so it is unclear that Iran has any real incentive to call back into the deal unless they can get Biden to give them boatloads of U.S. taxpayers' money. Maybe if Biden kisses the ring of Ayatollah Khamenei against the backdrop of shouts of “death to America and Israel” the supreme whatever he is might agree.

It is hard to see a good strategic reason for rendering this accord. Iran has continued to support terror groups and has actively attacked either directly or through proxies U.S., Saudi Arabian, and Israeli interests. They support Hamas and the Houthi rebels and have fought to prop up the Bashar Assad regime in Syria. Iran caused havoc in Iraq, extending the war, and is responsible for the deaths and injuries of countless American soldiers by IED devices.

Several sources, among them Reuters, believe that since mid-June 2014, Iranian combat troops are in Iraq, which Iran denies. Iran recently attacked by proxies ISIS a US military base in Syria. So why are we in such a hurry to get Iran back in this deal. Oh yeah, right. I remember Trump is bad. Of course, what do you expect from an administration that used poor migrants as political pawns leading children to be exploited in the worst possible way so you can promote your false political narrative. Human trafficking and human misery, so ok as you can regain political power. If we lift sanctions on Iran perhaps they could squeeze out 1 million barrels a day of oil and condensate.

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