Tag Archives: Iran-Israel War

Good News For Everyone

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On Saturday, The Associated Press reported that the Organization of the Petroleum Exporting Countries (OPEC) will boost their oil production starting in August. 

The article reports:

Eight members of the OPEC+ alliance of oil exporting countries say they will boost production by 548,000 barrels per day in August in a move that could further reduce gas prices this year.

The group that includes Saudi Arabia and Russia made the decision at a virtual meeting Saturday. They cited a “steady global economic outlook” and low oil inventories.

Oil prices spiked sharply last month during the bloody, 12-day conflict between Israel and Iran but then tumbled back down as the U.S. helped broker a peace deal after dropping bombs on three of Iran’s key nuclear sites.

Saudi Arabia holds significant influence in OPEC+ as the dominant member of the OPEC producers’ cartel, and Russia is the leading non-OPEC member in the 22-country alliance.

Along with Saudi Arabia and Russia, the group that met Saturday is made up of Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

This move has positive and negative implications. On the positive side, the cost of crude oil is likely to drop if production is increased (Law of Supply and Demand). On the negative side, that will impact American oil companies–their profits will be reduced as the price goes down–oil is a worldwide commodity. On the positive side, that may end the war between Russia and Ukraine. The Russian economy needs oil prices to be at least $60 a barrel. Currently prices are at about $66 a barrel. If they drop to $50 a barrel, the Russian economy and the Russian war effort will struggle financially. If the Russian people are unhappy enough, we might even see regime change in Russia.

The price of oil isn’t only about the price of oil. We found that out in the late 1970’s. In a world economy based on fossil fuel, the price of oil is very important. As President Trump’s policy of “drill, baby, drill” takes effect, its impact will be felt worldwide.

Stating The Obvious

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War is a horrible thing, but sometimes it is necessary. The Bible notes that there is, “A time to love, and a time to hate; a time of war, and a time of peace.” I am not sure that this is the time for peace in the Middle East, and evidently I am not the only person feeling that way.

On June 16th, John Hinderaker posted the following at Power Line Blog:

With respect to Israel and Iran, talk of peace is in the air. We are beset with calls from various quarters to “de-escalate” the situation there, lest wider war break out. President Trump, who partnered with Israel in deceiving Iran prior to Israel’s preemptive strike, is now talking about making another deal with Iran.

I hope he doesn’t mean it. The last thing Israel, or anyone else, should be thinking about is another agreement with the mullahs. Israel now controls the skies, has largely degraded Iran’s missile capability, and can do pretty much anything it wants, militarily. It was delightful to see that Israel wiped out the regime’s state broadcaster.

So this is a golden opportunity, almost certainly the best one Israel ever has had, or ever will have, to bring about regime change in Iran. The mullahocracy needs to go. Neither Israel nor the rest of the world will ever be safe, as long as Islamic extremists control Iran. Israel has already demolished Iran’s proxies, Hamas, Hezbollah, and, to a lesser extent, the Houthis. But if Iran’s regime is allowed to stay in place, it will readily rebuild its terrorist infrastructure, just as it will eventually rebuild its nuclear capability.

I agree with the idea of removing the Iranian theocracy, but I am concerned about what will replace it. First of all, America, covertly or openly, should not be involved in any regime change in Iran. Our track record there is not good–we installed the Shah, and that did not turn out well. I am not sure that we ever fomented a color revolution anywhere that actually turned out well. The Iranians need to be free to choose their own future without outside interference.