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Trump is getting desperate, not that it will help in the long run
Why the Trump administration is easing sanctions on certain Iranian oil stockpiles
Trump administration officials are making a desperate push to secure every available barrel of oil amid a worsening energy crisis — even if it means lifting sanctions on the very country that they’re fighting against.
But three weeks into war with Iran, the administration is running out of options to contain the skyrocketing price of oil and gas.
Trump officials now privately estimate that the higher prices triggered by the war could linger for months, especially as fighting in the Middle East intensifies and passage through the Strait of Hormuz remains nearly impossible, three people familiar with the internal discussions said.
The US has already exhausted all of its go-to policy levers for alleviating the supply shock rippling through the global economy, those people said.
The Trump administration has already agreed to release hundreds of millions of barrels from its strategic reserves, eased some sanctions on Russian oil and taken steps domestically to accelerate crude flows throughout the US. Yet those actions have done little to slow the surge in prices around the world.
Officials are now going even further by temporarily removing sanctions on barrels of Iranian oil that are currently at sea, a move that will allow allies badly in need of supply to purchase them.
The optics of such a move are discomfiting: As the US tries to decimate the Iranian regime militarily, it will simultaneously be allowing the regime to benefit financially. It’s a tacit acknowledgement of the intense economic and political pressure that Iran has put on the US by closing the Strait of Hormuz.
It's delaying the inevitable at this point while more refineries and oil/gas fields get bombed. US economy is going to look a bit different come midterms.
