Last week, US president Barack Obama tightened the reign even further on Iran oil exports, which may threaten to increase fuel prices even further as well as intensifying tensions already in place. The sanctions, which were passed by congress in December of last year, will enable the US to take further action against countries which do not comply with the reduction of oil import intake from Iran.
Obama's decision was reportedly based on the fact that there are enough non-Iranian oil exporters to see the world through supply and demand, despite the current shortage and staggering fuel prices. Not only is Obama being met with criticism over the coming re-election, but has been blamed for heightening the chance of a nuclear weapons capability in Iran, a fact that Tehran has adamantly denied however.
Despite this, Obama stated: "Nonetheless, there currently appears to be sufficient supply of non-Iranian oil to permit foreign countries to significantly reduce their import of Iranian oil."
In spite of the negativity surrounding the report, the US government have pointed out that many past Iranian export buyers have significantly reduced its spend with the country and were seeking supplies from elsewhere. Oil and gas contract jobs in other locations around the world may strive without competition from Iran or crumble under the pressure to meet expectations in the current tough oil and gas market.
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