Trump’s Iran Ceasefire Depends on American Oil
Trump has found his own formula — based largely on America’s tech savvy and energy abundance — to intimidate enemies and control friends.
One might not easily associate Donald Trump with Otto von Bismarck. Yet like the Iron Chancellor, who was famous for embracing the realpolitik of “blood and steel” in forging the German Empire, Trump has found his own formula — based largely on America’s tech savvy and energy abundance — to intimidate enemies and control friends.
The US President last night announced that Israel and Iran had agreed to a ceasefire after a 12-day war, though Israel has this morning accused Tehran of immediately violating the order. As the conflict threatens to restart already, energy policy could prove a critical determining factor.
Suggestions from the Iranian government that it would close the pivotal Strait of Hormuz clearly haven’t deterred Washington. Threats to shut down oil production would previously have terrified an America which just two decades ago was the world’s largest importer of oil. Now, the picture is very different. Largely thanks to fracking, America is the number-one producer of oil and gas globally, most of it produced in Trump-friendly states such as Texas. The Permian basin, located in the arid wastes of the western reaches of the Lone Star State, now constitutes the world’s fifth-largest oil producer, and is soon expected to be responsible for half of all US output. Other areas such as Pennsylvania, with its expansive fracking economy, also seem likely to benefit.
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