Hey Joe, why can the Iranians access their oil but you keep American oil off limits?
Bloomberg (8/26/23) reports: "While Iran and the US make wary diplomatic overtures, a return to their lapsed nuclear agreement remains a distant prospect. But for world oil markets, a pact is already taking effect. Months of secretive diplomacy between the two nations have yielded progress on prisoner exchanges, the unblocking of frozen assets and possibly even Iran’s enrichment of uranium. They also seem to have produced an informal arrangement on oil flows. US officials privately acknowledge they’ve gradually relaxed some enforcement of sanctions on Iranian oil sales. Tehran has restored production to the highest level since the ban kicked in five years ago and is shipping its most crude to China in a decade. Iranian officials are confident they’ll pump even more soon. The supply flood is helping moderate oil prices, which eased below $85 a barrel in London this week, offering relief to consumers and central banks after years of rampant inflation. Keeping the cost of gasoline — now near $4 a gallon — in check may also aid President Joe Biden’s reelection campaign in 2024."
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"China has become somewhat wealthy, which has given it the ability to keep up the illusion of productiveness for years, issuing debt to support make-work projects even as its economy hollows out. The United States, far more wealthy, can keep up the illusion for much longer. But not forever."
– Francis Menton,
Manhattan Contrarian
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