Despite the upcoming second round of U.S. sanctions on Iran next week, there is enough oil to supply the world’s energy needs, said U.S. President Donald Trump.
In a formal declaration on Wednesday, Trump said that “after carefully considering” reports submitted to Congress by the Department of Energy, there is “a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions.”
Trump’s analysis mirrors that of National Security Advisor John Bolton, who said in August that U.S. sanctions on Iran, which were lifted under the 2015 nuclear accord that America withdrew from in May, could cause the Islamic Republic to no longer export oil.
Zero Iranian oil exports would cut the world’s supply by more than 4 percent, likely increasing prices elsewhere due to less competition, according to The Guardian.
The sanctions are scheduled to take effect at 12:01 a.m. on Nov. 5.
In addition to targeting Iran’s energy sector, they’ll also target Iranian shipping and ship-building, as well as “the provision of insurance and transactions involving the Central Bank of Iran and designated Iranian financial institutions.”
