Do you hate the Iran deal?
—The Iran deal—or accord, depending on your approach—may have a series of surprising consequences. But according to what former State Department official Suzanne Maloney has to say, a considerable drop in gas prices might be just what some needed to start celebrating.
“The Iranians are really hungry for Western investment and capital and technology,” says the senior fellow in the Brookings Center for Middle East Policy. Because the country does not “have the same security challenges” seen in Iraq or Libya, this may be a welcoming change in tune. Once Iranian oil is pumped into the market and legitimate sales are reported across the globe, the over 20 to 40 million barrels of oil Iran has in store will increase the global supply, causing the price of crude oil to drop considerably.
But it doesn’t stop there. Experts believe the incentives will force Iran to improve its oil infrastructure quickly, consequently ramping up oil production and providing anything from 500,000 to 1 million additional barrels a day to regional customers in Europe and Asia.
Over time, the country may even pose a concern to Russia by supplying oil and gas to Eastern and Southern Europe.
According to IHS Energy’s vice president of energy, Jim Burkhard, the increased supply will have an important effect on U.S. gas prices. “[I]f international crude oil prices were to soften even more,” Burkhard says, “[U.S. customers] would see that reflected in pump prices.”
While the hawkish faction of both the Republican and the Democratic parties debate the sane and go on and on about how terrible President Barack Obama’s Iran deal is, some simply can’t wait to spend less to fill the tank.
Do you believe the Iran deal will be positive to the U.S. economy?
Or do you hate the Iran Deal?