Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

What's really at stake with the Iran nuclear deal?

By Robert Berke - posted Friday, 21 August 2015


The Saudis enthusiastically took up the opportunity to lower global energy prices, ostensibly claiming they were not aiming to kill off rivals in Russia or the US , but merely that they were not the highest cost producer.

There were also other unexpected reversals. It has been widely reported that the Gulf Kingdoms are outraged over the US drawing closer to Iran, as well as the US distancing itself from the wars in the Middle East. Evidence for this view can be found in the Saudis' multi-billion dollar deals with the Russia, which fly in the face of US /EU sanctions.

The clincher in the Russian-Saudi entente may just have occurred with the sudden ISIS terrorist attacks in Saudi Arabia.

Advertisement

The Saudis are all too aware of the threat that ISIS presents, the monster that some claim they created, and are now badly in need of military assistance, especially with the US declining full scale military engagement in the region.

The Glut's Toll

The result of the ensuing glut is a fast declining industry that is now willingly accepting new production cutbacks, while oil producing countries like Russia, Canada and Australia, are edging dangerously close to recession, with their currencies hitting six year lows.

As reported by CNBC, global job losses in the oil industry have reached over 141,200, with severe ripple effects across supporting industries. The US is by no means immune to the downtrend, where current lay-offs in the energy field are approaching 71,000, and expected to climb.

US Strategy for the Middle East

If, as it seems, Obama is back on top as a world leader, it's important to understand his overall strategy and the likelihood of success.

Advertisement

The consensus amongst energy mavens is that if the Iran nuclear deal eventually leads to a withdrawal of sanctions, the results will be increased Iranian supplies, forcing prices lower by some $10 per barrel, according to World Bank estimates.

But Iran's nuclear deal is about much more than the price per gallon. What the US and its allies are trying to accomplish is no less than the reversal of political hostilities that have marginalized Iran for over thirty years and fueled hostility across the region.

As the President recently stated, the nuclear agreement is also meant to restore Iran as a regional leader in the Mid-East and turn a hostile relationship into at least a neutral one. That could go a long way in changing the political structure of the Middle East, while reducing the West's dependency on its traditional allies in the region.

  1. Pages:
  2. 1
  3. 2
  4. Page 3
  5. 4
  6. 5
  7. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

8 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Robert Berke writes for OilPrice.com.

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 8 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy