The elastic Iranian nuclear sanctions deadline has passed once again with the umpteenth extension. Like to so many other agenda-driven initiatives the past six years, the Administration’s spotlight is now focused on welcoming Iran back into the global marketplace, at a price, and it appears nothing will deter this, like nothing stopped so many other self-initiated programs throughout this presidency.
A recent headline pretty much sums up not only the negotiations, but the pattern through which this President has been forcing his agenda: “What Happens In Vienna Stays In Vienna.” Didn’t we just see something similar during the Pacific trade talks? Now, John Kerry sits behind airtight doors with a virtual blank-check mandate to make this deal happen, whenever; however.
What has happened to America?
One outcome of the negotiations, aside from Iran being able to openly resume their nuclear program, will be millions of barrels of Iranian oil flooding an already over-saturated world crude market. This could have disastrous consequences.
We recently witnessed a Black Monday in oil prices, as a single-day 8-percent drop left markets reeling. A triad of bad news seemed to tip the scales downward, likely in a move that may not reverse quickly. In addition Greece imploding and Chinese stocks crashing, reports of a possible sanctions agreement also plagued nervous commodity trading pits.
President Obama has shown no strategic regard for America’s energy policy. Putting Iran in a position to dump oil on the market will be bad for the entire ecosystem. Thanks to America’s renaissance due to hydraulic fracturing, the world has more than enough oil to meet current and future demands. Middle Eastern countries are hemorrhaging cash from low oil prices. Smaller producing nations who don’t have financial stockpiles could face future defaults if prices don’t stabilize soon. American producers who don’t have margins at $50 oil could finally succumb to this latest downturn. Russia’s economy continues to flounder, as anything below at least $100 means pain for Putin.
Iran cannot be trusted with nuclear weapons. Period. Even the strangest of bedfellows, Saudi Arabia and Israel, agree on that. Nor can it be trusted that whatever agreement is finally reached will actually be enforced. History tells us that.
While it appears we are on the doorstep of allowing yet another rogue nation restored trade and diplomatic status, this deal could have immediate and potentially catastrophic consequences on the energy sector.
Written by: Chris Faulkner, CEO of Breitling Energy Corporation and author of the recent book, “The Fracking Truth.” He is also the producer of the documentary, “Breaking Free: The Shale Rock Revolution.”