Iran oil exports set to resume under deal

Washington, June 21 (IANS) The Trump administration said on Sunday that Iran will once again be able to sell oil on international markets as part of the emerging diplomatic framework between Washington and Tehran, a move that could have significant implications for global energy prices and major oil-importing nations such as India.

Speaking on ABC’s “This Week”, Energy Secretary Chris Wright said Iran’s return to energy markets would be one of the immediate outcomes of the ongoing negotiations, even as discussions continue over Tehran’s nuclear programme.

“Oh, Iranians have been selling oil most of the last 47 years,” Wright said. He noted that Iranian exports had fallen sharply during the first Trump administration but increased significantly during the Biden years. “That’s all they’re getting, is the ability to yet sell their oil again.”

According to Wright, Iran is expected to return to export levels of more than 1.5 million barrels a day, roughly matching volumes seen before the latest conflict. He said the United States had demonstrated during the confrontation that it could stop Iranian oil exports entirely, giving Washington leverage in the negotiations.

“We proved to them for two months we could cease them from selling a drop of oil,” Wright said.

The administration also sought to reassure consumers that energy markets were stabilising following weeks of uncertainty linked to fighting in the Gulf and disruptions around the Strait of Hormuz.

Wright said oil and natural gas flows through the strategic waterway had already returned to normal levels.

“Flows of oil and natural gas through the Strait have already returned to normal,” he said, adding that American production, increased output from Venezuela and cooperation among major energy producers would support further declines in energy prices.

The prospect of renewed Iranian oil exports has become one of the most debated elements of the emerging agreement.

Former Obama National Security Adviser Susan Rice argued that Tehran was receiving major economic benefits before agreeing to a comprehensive settlement.

“As the secretary just acknowledged, Iran, as of the signing of the agreement, so on Thursday, is now able to sell all of its oil and all of its oil products on the market unimpeded,” Rice said. She also criticised the administration for allowing Iran to use the international banking system and gain access to frozen assets.

Rice called the arrangement a “jaw-dropping, horrific surrender” and said key concessions should have been tied to a final agreement rather than granted at the outset.

The disagreement highlights the broader debate in Washington over whether economic incentives should be used to encourage Iranian cooperation or withheld until Tehran accepts stricter limits on its nuclear and military programmes.

–IANS

lkj/ksk/uk