Self sanctioning of West and rising oil prices

By sanctioning Moscow and Tehran, the Western countries are basically hitting themselves, because today alternative energy markets are available, money sources have shifted significantly and the West is no longer the only buyer of oil or the only place where the money come from.

With the rising oil prices, gasoline prices are also soaring in the United States, and this will lead to more and more dissatisfaction among the people of this country because of the economic crisis and the sharp decline in people's purchasing capacity, devaluation of the dollar, and also one-cent increase in the price of a gallon of gasoline could also put additional pressure on the middle and lower classes of the United States, who now make up more than 99 percent of the population. The US president is well aware of this, and for this reason he spoke with the Saudi king a few weeks ago so that the Saudis could produce more oil and save him.

However, the Saudis themselves are stuck in the Yemen war and have spent more than $ 750 billion so far, and they blame US arms companies who only look for more money as the war does not seem to have an end.

The Saudis could not believe as the oil value soared to $120, they embraced it because with an increase of each dollar in a barrel of oil, the Saudis make a profit of millions of dollars. Looking at a ballpark figure, a $20 increase in oil prices would increase their revenue by about $200 million a day, reaching $20 billion over a period of 100-days, providing for Mohammad bin Salman a good chance to improve his image in Saudi Arabia.

The United States has been imposing the toughest oil sanctions on Iran for the past five years and has not allowed Iran to sell oil easily as one of the largest oil holders in the world, but Iran found a way to sell its oil, and was never zero in sales, and today it sells more than 1.8 million barrels of oil. Meanwhile, the only ones who have been in loss were the European countries, which until a few years ago bought thousands of barrels of oil per day from Iran and exported goods in return.

Biden should now start praying that 4 million barrels of Iranian oil enters the market as soon as possible, and that European countries also stand in line, who may perhaps get benefitted from the Iranian oil production. Ending the US sanctions, which it in a way imposed against itself and the European countries, there is a hope, the situation may improve a little and with the entry of Iranian oil into the multi-dollar oil market, the prices can decline.

In the United States, officials have even agreed to use the strategic reserves of hundreds of millions of barrels with the hope of declining the crude oil prices, while as this does not seem to be the final solution.

As long as the United States pursues a policy of sanctions and pressure on countries with energy resources and tries to subdue these countries by imposing sanctions, threats and economic blockades, the ones who will suffer the most are the people of the United States and the European countries, who follow the policies of the White House leaders without even thinking.

Author and Analyst: Edward Wilson