Iran – Trump Administration Unilateralism and Repercussions

April 25, 2019

Iran – Trump Administration Unilateralism and Repercussions

Padmini Arhant

President Donald Trump latest decision to end waiver on oil imports from Iran targeting United States allies and key trade partners in South, South East and West Asia is a cavalier approach with serious economic, political and strategic ramifications that are counterproductive

President Donald Trump withdrawal from Joint Comprehensive Plan of Action (JCPOA), the agreement reached between P5+1 and Iran with mutual understanding, commitment and stipulations binding on all sides was a breach of accord casting a shadow on United States credibility and trustworthiness on international pact. 

The U.S. incumbent administration tunnel vision in this regard against Iran at Israel, Saudi Arabia and UAE behest is ill-conceived and impulsive action with no concern for immediate repercussions on oil markets and global economy.

Not to mention the potential impact on United States economy possibly and unnecessarily thrust into recession due to inevitable hike in crude prices already in effect hurting end consumers and businesses alike.

The contagion effects then triggering Federal Reserve interest rates adjustment to control inflation, high costs borrowing resulting in growth stagnation in return producing unemployment and poor consumer spending eventually affecting the economy at large. 

While these rapid developments cause tremendous stress on the economy, the consequences on macro management could be unsustainable.

United States with a budget deficit of $1.1 Trillion burdened on U.S. taxpayers expecting Petro dollars from Saudi Arabia and partners through arms deals is myopic and capricious in the effort to reconfigure geopolitical landscape and dominance in the Middle East.

United States administration together with allies engaged in contentious economic warfare against Iran through isolation is self-inflicting damage for the former besides the move creating economic challenges for trade allies in South and South East Asia.

United States policy towards the two crude oil producers – Iran and Venezuela aimed at regime change i.e. removal of governments essentially punishing the respective population through economic sanctions subjecting children, women, men, sick and elderly to inhumane conditions and poverty is worthy of condemnation.

Notwithstanding the criterion generating economic woes worldwide considering the rise in oil prices pervasive influence on goods and services with food imports in particular hit in the short and long run.

The wanton strategy to suit oligarchy and hegemonic goals would not prevail in the renewed contemporary environment rejecting unilateralism confined to obsolete and negative outcome.

Besides, Iran in compliance with JCPOA per IAEA verification in this context is within rights to exercise necessary measures to alleviate problems confronting the Islamic Republic.

Iran’s preparedness to block Strait of Hormuz would only exacerbate the crisis in seaborne oil supply dragging the containable issue into tankers war given the significance of this passage facilitating transportation from the Persian Gulf to global destinations.

There is much to lose than profit from the recent proposal to end waivers to nations importing crude oil from Iran.

The sanctions and radical positions against Iran and Venezuela exclusively to serve United States and certain so-called allies is to be reversed in global interests and importantly averting economic calamity drastically affecting the source and others at best laid to rest.

Thank you.

Padmini Arhant

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