Extent of seriousness of the upcoming oil crisis following Iran’s exit

The elimination by the United States of its sanctions-abandonment for Iran’s oil has been followed by a chain of actions that, according to it, are a reply to the alleged Iranian threat. Amidst increasing tensions in West Asia, the Foreign Minister of Iran, Javad Zarif, recently visited the city of New Delhi as member of a regional outreach that consisted of China, Russia, Iraq, etc.

Mike Pompeo, the United States Secretary of State, stated how the Donald Trump administration will not be making any exceptions by allowing some nations to import Iranian oil after having gained the conditional waiver. This decision by the United States was influenced by the worsening of relations between Saudi Arabia and Iran. The U.S. has summoned back all non-emergency American workforce deployed in Iraq, for this purpose they have sent the USS Abraham Lincoln aircraft carrier, B-52 bombers. The U.S. has also enforced new sanctions on numerous Iranian personnel.

The increased tension is owed to the latest attack on two of Saudi Arabia’s oil tankers off the United Arab Emirates’ coast and Saudi Arabia’s land installations by unknown personals and has resulted in a 3% increase in crude oil prices. The build-up has further accelerated following the assembly of military assets in the area by the U.S. with the intention of pinning down Iran.

Iran has replied by threatening to close off the Strait of Hormuz in order to treat and trade the United States carrier as a ‘target’ if it makes it gets close enough to Iran.

Furthermore, it is evident how the United States attempts to hold the Iranian military and government responsible for the oil tanker attack. John Bolton, the United States National Security Advisor stated how attacks on the U.S. or its allies will be responded forcefully. This remark implies how the U.S., along with help from Israel and Saudi Arabia, is preparing for intensification of scenario.