US: global capacity can make up for Iranian cuts

US: global capacity can make up for Iranian cuts

The US wants to cut Iran’s oil revenues to zero in an attempt to enforce the sanctions it is to place on the Middle Eastern nation and has stated that global oil capacity is high enough to cover the reduced supply from Tehran.

Brian Hook, the State Department’s director of policy planning, said the US was working with its allies to get as many countries as possible to cut all Iranian oil imports.

Hook said: “Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue on crude oil sales,” he added: “We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity.”

Saudi Arabia has told US President Trump that it has 2 million barrels per day of spare capacity and would raise oil production if needed.

The Trump administration is hoping to achieve this goal by November when it will reimpose sanctions against Tehran following Trump’s withdrawal from the 2015 nuclear deal with Iran earlier this year.

50 international companies have already announced their intention to depart the Iranian market as the US look to re-impose sanctions.

Hook said: “We have been clear with countries and companies around the world that we are bringing severe economic pressure on Iran until the regime changes its destabilizing policies.”

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