US President Joe Biden and his Democratic Party will pay a political price in the midterm congressional election if they fail to remove Iran sanctions and do not allow more Iranian crude to enter the international markets, says an economic analyst.
Esfandyar Batmanghelidj told the Newsweek in a report published on Wednesday that a decision to lift US sanctions on Iran will play to the benefit of Biden’s administration as more oil supplies from Iran can ease soaring energy prices in the US in the run-up to the November elections.
“The fact is that if Biden doesn't take a dramatic step to get more oil flowing, he will pay a political price,” said Batmanghelidj.
The Newsweek report cited remarks by other analysts who said that additional oil supplies from Iran and Venezuela, another country under US sanctions, will help ease a global energy shock that has been caused by the war in Ukraine.
The analysts said that Iran is the only producer that can add more than 1 million barrels per day (bpd) of oil to the international markets as estimates suggest that combined additional supplies from Saudi Arabia, the United Arab Emirates and even Venezuela could hardly reach over 0.5 million bpd.
Argus Media oil and gas analyst Nader Itayim told the Newsweek that Iran could add 1.25 million to 1.3 million bpd to the market if it is freed from the sanctions.
The analyses come days after reports from a meeting of G7 group of advanced economies in Germany suggested that France had pressed the US for a removal of sanctions on Iran and Venezuela.
It also come right after Iran and the US, along with other international powers, resumed indirect talks in the Qatari capital Doha to revive a 2015 agreement on Iran's nuclear program.