Iran and Obama’s oil problem (Israel Hayom)

– “Iran produces just over 4 million barrels of oil a day, of which it exports approximately 2.5 million barrels. Iran’s production is a bit less than 5 percent of total world output. The sanctions bill passed by the U.S. Congress, and the threat by European countries to stop importing Iranian oil, have had an immediate impact. The Iranian currency has suffered a significant drop in recent weeks. With the sanctions legislation in place, U.S. officials have been lobbying countries that rely heavily on Iranian oil to voluntarily choose to switch to other suppliers. Saudi Arabia, the world’s leading producer of oil, has been on the receiving end of threats from the Iranians, demanding that they not increase their daily production, to make up for any cutoff of oil from Iran.

Iran has been saber-rattling in other areas as well, including threatening to close the Strait of Hormuz to oil tankers that would cut off a far larger share of world output than just the Iranian oil exports. In response to this threat, as reported in The New York Times, Obama sent a letter to the Iranians, now released by Iran, that informs the mullahs that shutting the strait would be a red line that Iran dare not cross. The letter contains both carrots and sticks, however, the carrots being an offer to Iran to begin negotiations on all outstanding issues between the two countries.”

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