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The Iran Nuclear Deal: Obligation or Opportunity?

by John Brian Shannon

It’s always helpful to look at a country’s actions over the past 200 years to help understand what its intentions may be here and now, and in the future.

The burgeoning but relatively isolated country of Iran hasn’t militarily attacked another country for over 200 years, and it was Saddam Hussein’s Iraq that militarily attacked Iran in September 1980 — a conflict that finally ended in August 1988 with 1 million casualties and an economic cost of $680 million to $1 trillion dollars — with no clear winner and no benefit to either country.

After all that blood and treasure, no benefit to either country(!) although via the UN-sponsored peace accord and as a penalty to Iraq for starting the war, Iran gained access to the Shatt al-Arab waterway which runs into the Persian Gulf.

Since 2000, Iran has purportedly financed organizations (some listed as terrorist organizations, and others not) throughout the Middle East and most recently in Syria, Iraq, and perhaps Lebanon, in an attempt to exert some control on the various forces operating around their region. (Every country uses various methods to control what happens in its own region, so no news there)

But nothing captures the world’s attention like the Iran nuclear deal.

U.S. President Donald Trump says the deal is a bad one for the West and shouldn’t have been signed and wants to walk away from the deal, reserving the right to act unilaterally if he feels the country is a danger to the U.S.A. or its Middle East allies.

Last week, France’s President Emmanuel Macron flew to Washington to meet with the U.S. President to convince him to stay in the deal or to embrace a ‘third way’ which means renegotiating some of the agreement to better suit U.S. concerns.

Iran barely signed the previous agreement… so it will be interesting to see how the U.S. can get everything it wants from a renegotiated deal while still obtaining Iran’s signature to a new agreement. A deal isn’t a deal unless both sides sign on the dotted line.


Why Would the U.S. Care About Iran? (and Syria, for that matter)

From a strategic perspective, there isn’t a country in the world that could be less important to the security of the United States than Iran, and the same goes for Syria.

Neither country has the kind of military that could threaten America, nor could they project their power anywhere near the North American continent.

Unless the United States is actively working for Israel — a country which has an irrational fear of Iran (again, Iran hasn’t invaded any other country for over 200 years) and is willing to spend billions or even another trillion dollars to wage another Iraq War-style conflict against Iran, there’s no reason for the U.S. to have any dealings with Iran whatsoever.

Iran is a regional power at best, and will remain so for approximately the next 30-years as it hasn’t the capacity to be anything else.

If the United States is actively working for Saudi Arabia — a country that views Iran as an unwelcome competitor in the race to dominate the region, the same advice applies. Why should the U.S. spend multi-billions and sacrifice thousands of young soldiers to satisfy the Saudi ambition to be the local hegemon?

It’s not like Iran is withholding oil deliveries. On the contrary, Iranian oil is easily obtainable with a phone call — the country is highly motivated to sell every drop of oil due to high spending on social programmes by the Iranian government that are funded by oil revenue.

And Iran’s crude oil is rated either #2 (sweet) or #3 (semi-sweet) which means it’s in high demand around the world. Global oil producers have already pumped all of their #2 sweet crude out of the ground years ago; only Iran and Venezuela have significant reserves of sweet crude in the 21st-century.

As for oil refineries, they need Iran’s (or Venezuela’s) #2 sweet crude oil to blend with the oil supplied by their producers which is almost always #4 (sour) or #4.75 (very sour) like the Canadian oil sands product.

Most refineries won’t accept sour crude oil unless there is plenty of #2 or #3 sweet crude blended into the sour crude. It’s just too toxic to refine ‘sour’ as it requires a much more stringent maintenance protocol, meaning the refinery needs to shut down and go into ‘maintenance mode’ more often. That downtime represents a significant loss of revenue for oil refineries.

Therefore, as long as Iran continues to ship huge quantities of sweet crude, the United States should be facilitating that oil business instead of trying to curtail it.


The EU View of Iran is a Mature View

Say what you want about the Europeans, but they don’t allow themselves to be used by countries like Israel that have an irrational fear of Iran and want to use the United States and the EU to keep the Iranians ‘down’ and in their ‘proper’ place and thereby become the regional superpower, or countries like Saudi Arabia that want to use the United States and the EU to keep the Iranians ‘down’ and in their ‘proper’ place and thereby become the regional superpower.

To oversimplify the EU view; As long as Iran’s sweet crude continues to flow (it is) and as long as Iran isn’t actively invading any other country (it isn’t) then there’s no reason to use some imagined breach of the Iranian nuclear deal to launch another trillion dollar war in the Middle East. And, as always, the EU continues to refuse to allow itself to be used by regional powers such as Israel and Saudi Arabia.

In the final analysis, the EU’s position on the Iranian nuclear deal is the most enlightened of all and it is the view the United States should support.