Forced into a humiliating U-turn amid a potential global economic meltdown, the Trump administration announced today that it may remove sanctions on Iranian oil already at sea.
Treasury Secretary Scott Bessent revealed on Fox News that the decision to release 140 million barrels of oil was intended to prevent China from benefiting from the situation. “That’s about 10 days to two weeks of supply that the Iranians had been pushing out that would have all gone to China,” he said. “In essence, we will be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days as we continue this campaign.”
He further indicated that a unilateral release of U.S. oil reserves is under consideration to stabilize the market, which has experienced price spikes from $53 per barrel in January to $97 currently.
“When we go through, as we plan, to unsanction the Iranian oil, that oil will go up to a market price, and it will end up in places other than China. It can flow into Malaysia, Singapore, Indonesia, Japan, India, who have been good actors in this,” Bessent added.
This concession marks a clear retreat by the Trump administration, a move widely ridiculed on social media. Aaron Bastani of Novara Media commented, “This is literally the dumbest war in human history. No hyperbole.” Satirist Karl Sharro joked, “Next up: US asks Iran to join anti-Iran coalition.”
Following U.S. and Israeli strikes that killed Iran’s supreme leader, Ayatollah Ali Khamenei, the country responded by shutting the Strait of Hormuz on March 2. This vital maritime corridor, lying between Iran and Arabia, is crucial for global trade, channeling roughly 20% of the world’s oil and gas supply.
This shutdown triggered widespread economic and political chaos, seemingly catching the Trump administration off guard. A March 12 Wall Street Journal editorial by Peter Navarro, Trump’s Senior Counselor for Trade and Manufacturing, was headlined “Iran War Will Lower Energy Prices.”
Trump apparently assumed his strike on Iran would be swift and produce limited consequences. Instead, Iran struck back against U.S. bases across the region, sowing fear in the Gulf nations and causing ripples throughout the global economy.
In reaction, Trump called on NATO and Asian partners to deploy military forces to forcibly reopen the Strait of Hormuz. Describing the operation as “very small,” he said:
“I really am demanding that these countries come in and protect their own territory because it is the place from where they get their energy. And they should come and they should protect it. You could make the case that maybe we shouldn’t be here at all, because we don’t need it.”
However, his allies firmly declined. Canadian Prime Minister Mark Carney declared, “Canada is not participating in the offensive operations of Israel and the United States, and will not, ever.” Germany’s Defense Minister Boris Pistorius echoed this, stating, “This is not our war. We have not started it. What does Donald Trump expect a handful or two handfuls of European frigates to do in the Strait of Hormuz that the powerful U.S. Navy cannot do?”
Perhaps most concerning for Trump was the stance of Belgian Prime Minister Bart De Wever. In an interview with L’Echo, he warned that Washington’s assault on Iran will compel Europe to quickly negotiate with Russia to avoid financial collapse amid a looming energy crisis.
“We must normalize relations with Russia and regain access to cheap energy. That is common sense,” De Wever explained, adding, “In private, European leaders agree with me, but no one dares to say it out loud. We must end the conflict in the interest of Europe, without being naïve towards Putin.”
Despite Trump’s assertions that this war will not resemble Vietnam, rising oil prices, growing public opposition, a fragile global economy, and overt defiance from key allies suggest this conflict may escalate beyond Washington’s control, potentially causing significant harm to American global standing.
Original article: www.mintpressnews.com
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