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How the U.S. Persuaded Israel to Hold Back on Iranian Oil Targets

(Israel Hayom) Danny Zaken - One particular economic indicator that tells us everything about Israel's security landscape and where we're headed - Iran's oil exports. The number instantly telegraphs whether regional terror forces are about to bulk up or slim down. When global sanctions hit Iran's nuclear program, Hizbullah's allowance took a massive hit in the latter half of the previous decade. Then came the nuclear deal, unfrozen assets, and lighter sanctions - suddenly Tehran was raking in $50 billion annually from oil. No surprise that from 2016 onward, we saw Iranian proxies everywhere flexing their muscles: Hizbullah, Iraqi militias, Yemen's Houthis, and Palestinian Islamist groups all grew fat on Tehran's petrodollars. The landscape shifted dramatically after Trump cranked up sanctions. Iran struggled to bankroll its military ambitions and proxy networks. But when Biden took office in 2021, the sanctions pressure eased considerably. This year, Iran's oil sales hit $50 billion, with China playing the role of eager and nearly exclusive customer, happily scooping up discounted Iranian crude. But last month brought a stunning reversal. The U.S. Treasury announced fresh sanctions targeting Iran's oil sector. This time they went after maritime shipping companies that help Iran play hide-and-seek with its oil exports. The impact was immediate and dramatic. Iranian exports to China plummeted from $4 billion in August to $1.5 billion in September, with October projected to sink below $1 billion. This economic offensive allowed American officials to make the case that striking oil facilities would be overkill. Moreover, Gulf states, including Saudi Arabia, pled with Washington to keep Iranian oil infrastructure off the target list, terrified of Iranian retaliation against their own facilities.
2024-10-27 00:00:00
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