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OIL: How Will OPEC Respond to Iran’s Call for Action Against U.S. Sanctions?

OIL
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How Will OPEC Respond to Iran’s Call for Action Against U.S. Sanctions? 

  • Simon Watkins writes for oilprice.com that Iran called on all members of the OPEC oil cartel last week to take united action against the U.S.’s ramping up of sanctions on the Islamic Republic.
  • The statement from President Masoud Pezeshkian followed Trump’s instruction to his key cabinet colleagues to increase sanctions on Iran to reduce its oil exports to zero. President Trump had earlier called for Saudi Arabia and OPEC to increase their oil production to push oil prices down. So how will OPEC members respond to Iran’s call to action and what is the West’s strategy to handle the situation from here?
  • The worst-case scenario for the West is that OPEC members embargo oil exports to the U.S. and its key allies. These members account for around 40% of the world’s crude oil output, about 60% of the total petroleum traded internationally from their oil exports and just over 80% of the world’s proven oil reserves. Coming at a time when the West is still readjusting to the loss of significant oil and gas supplies from Russia following its 2022 invasion of Ukraine, there is no reason to think that the results of such a widescale embargo now would be any less dramatic on the oil price. 
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How Will OPEC Respond to Iran’s Call for Action Against U.S. Sanctions? 

  • Simon Watkins writes for oilprice.com that Iran called on all members of the OPEC oil cartel last week to take united action against the U.S.’s ramping up of sanctions on the Islamic Republic.
  • The statement from President Masoud Pezeshkian followed Trump’s instruction to his key cabinet colleagues to increase sanctions on Iran to reduce its oil exports to zero. President Trump had earlier called for Saudi Arabia and OPEC to increase their oil production to push oil prices down. So how will OPEC members respond to Iran’s call to action and what is the West’s strategy to handle the situation from here?
  • The worst-case scenario for the West is that OPEC members embargo oil exports to the U.S. and its key allies. These members account for around 40% of the world’s crude oil output, about 60% of the total petroleum traded internationally from their oil exports and just over 80% of the world’s proven oil reserves. Coming at a time when the West is still readjusting to the loss of significant oil and gas supplies from Russia following its 2022 invasion of Ukraine, there is no reason to think that the results of such a widescale embargo now would be any less dramatic on the oil price.