America may soon lift the sanctions imposed on Iranian oil, which is currently stuck in tankers. US Treasury Secretary Scott Besant said that this will increase global supply and help in bringing down oil prices. He told that there are about 140 million barrels of Iranian oil lying in the sea, which if it comes in the market, can be equal to the supply of 10 days to 2 weeks.
Trump government’s big plan
US President Donald Trump is considering taking this step to control rising oil prices. According to the report, this decision may be temporary, like earlier some relief was given on Russian oil. If this happens, it will be contrary to Trump’s Maximum Pressure Policy since 2016, in which strict economic sanctions were imposed on Iran.
Why did oil prices increase?
Oil and gas supply has been affected due to tension in the Middle East and attacks by Iran. Besides, the prices have increased further due to obstruction in important routes like the Strait of Hormuz. The price of Brent crude was $79 per barrel before the war, which increased to $119.
What will be the effect?
If Iranian oil comes into the market, there may be some relief in prices. But this will also give Iran big economic benefits for some time, because it will be able to sell oil without restrictions.
Increased pressure in America
The rising prices of oil and gas have affected the common people in America. Petrol prices have also increased rapidly and have reached close to the high level of the last 30 years. Its effect is also visible on the American economy. Recently the growth has been only 0.7%, unemployment has increased and jobs in the manufacturing sector have decreased.
Overall, America is trying to control prices by lifting the ban on Iranian oil. But this step can have a big impact on both political and economic levels.