Not much is being said about the relationship between the Iran nuclear deal and the price of oil. With Iranian oil potentially off the open market, the price has risen from $50 to $70 a barrel. Two of the biggest beneficiaries of this increase are the American shale oil industry and Russia, whose government counts on oil for about 50 percent of its revenue.
Vladimir Putin gets to have it both ways: He denounces the United States for breaking the deal, and gathers the extra revenues to the benefit of the Russian economy. It seems to me that Donald Trump’s actions are more about money than nuclear weapons, as he continues his bromance with Putin.
In the longer term this is just one more nail in the coffin of the petroleum industry. Around the world, the movement toward green energy is unstoppable, especially in the world’s second-largest economy (China). All that is needed to accelerate that movement is higher petroleum prices.
William A. Johnson