IRAN INCREASES THE PRICE OF IT’S OIL 20%, TACTICAL LEVERAGE IN THE GLOBAL OIL MARKET
- Michael Thervil
- 4 minutes ago
- 2 min read
Written by Michael Thervil
[Iran oil price increase] With the trilateral war between Israel and America versus Iran continues, the oil and gas markets appear to be the weapon of choice outside of traditional bullets, missiles, bombs, and drones. As of yesterday, since the Americans ended their counter naval blockade in the strait of Hormuz because they failed to defeat Iran in that military venture, it has been reported that Iran has exported just over 40 million barrels of crude oil. While Iran has agreed to allow vessels to set sail for 60 days under the current rules and condition of the fragile memorandum of understanding which was signed on June 17th between themselves and America, Iranian Chief Negotiator Mohammad Bagher Ghalibaf has announced that Iran will raise the price of their oil by 20%.
Geopolitical analysts, economist, and oil and gas experts believe that the actions taken by the Iranians to increase the price of their oil is due to them seeking compensation for ships utilizing the strait of Hormuz without paying the original tolls that were put in place and erased by the current memorandum of understanding. This reframing is considered to be a victorious tactile move by geopolitical strategists because it allows Iran to not only further project their power and dominance in the strait of Hormuz, but it also them to compensate for any financial losses that they may have taken due to the memorandum of understanding taking place between the two countries.
Mohammad Bagher Ghalibaf was quoted saying: “The sovereignty of the Strait of Hormuz lies with Iran and Oman, and traffic in the strait is subject to arrangements determined by Iran”, followed by the comment that “Iran will not give up its rights in the Strait of Hormuz under any circumstances, and these are our territorial waters.” Oman has been largely silent on the international stage when it comes to the actions that Iran has embarked on within the strait of Hormuz, and they have been even more silent on their position on how they believe Iran's 20% price hike on Iranian oil will impact both the international market, industries, and consumers.
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This was a great tactical move by Iran in which they didn’t have to fire a single shot at the Americans. The use of one it’s greatest weapons, the strait of Hormuz as leverage combined with their ability to correctly forecast the most likely outcomes and how those outcomes will adversely affect America demonstrates the intellectual capabilities and mindset of Iran when it comes to war. Keep in mind that although the game of chess has its roots in India, it would be the Iranians that would make chess what it is today, and that fact is shown in the latest strategic moves by Iran. The question is how much revenue can the Iranians make and at what speed can those funds be extracted from the global community that can be used to prepare Iran for the next actions of both the Israelis and America?
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