In comments that may set up a catastrophic amount of fallout in international trade, officials from the Trump Administration say that China will absolutely not be given any time to “wind-down” their purchases of Iranian oil, nor any extensions beyond May 1.
China is by far Iran’s largest customer, and would have by far the hardest time sourcing enough replacement oil on the market. These comments are likely to have an impact on the oil market, pushing prices higher, and more importantly, risking a US ultimatum on China.
The implication of the waiver loss is that any country that buys Iranian oil after May 1 will be cut off from the US, and by extension the world’s, banking system. Doing that with China, a major US trading partner and a huge economic power, would be catastrophic to the world economy.
US officials are dismissing this as a concern, saying they believe the huge consequences are exactly why China will ultimately cave to US demands. China, however, has long insisted they can’t afford to stop buying from Iran, and under the P5+1 nuclear deal, of which they are still a party, they are under no obligation to stop. China may feel compelled to keep trading with Iran both to show good faith in their negotiations, and because they just flat out need the oil to keep their economy running.
This would put the Trump Administration on the spot, trying to show that their ability to dictate global commerce remains intact. Though doing so would cause major harm to the US and world economy, the administration may feel obligated to do so just to assert its dominance.
How do you say ‘BITE ME’ in Chinese? I’m pretty sure that’s what they’re saying in Beijing about our warnings and bluster.
咬我
lol
Could this be the final demonstration of Pompeo’s clueless arrogance and embarrassing and impotent stupidity, that gets him — and maybe Bolton as well — booted? (Or will Trump save Bolton’s humiliation for later in the drama?) The arc of the story unfolds.
“Bite me!” I like that.
Yặo wŏ! ( 咬我! ) Would make a great T-shirt! In red, no doubt.
(With acknowledgement to Garrett Connelly below, who beat me to it.)
Hey Stockman, this is why there is no joy in Never-Trumpville.
The arrogance of these dc swamp rats is overwhelming.
“China has alternative oil suppliers including the United States and Saudi Arabia said the officials” – That’s one way to try to get a declared rival to do business with the US and its allies: declare they are not allowed to buy oil from others. Hopefully China will understand what it means to let the US unilaterally dictate China’s economic and foreign policies… obviously this is about a LOT more than just what makes the best short-term economic sense.
China should call Trump’s bluff, because China stands with the world and the US stands alone on this one.
If ending the waiver is vital to US aims and continuing importation of Iranian oil vital for China’s economy the result will be war: nuclear war, not just consequences ‘catastrophic to the world economy.’ One hundred years ago events set off a series of world wars, where a number of the protagonists deluded themselves the war could be won. Today, it takes only one government to come to that disastrous conclusion for everyone to lose.
https://www.ghostsofhistory.wordpress.com/
What these US Gov morons don’t seem to understand is they can get away with some of this crap, ok a lot of this crap, to a certain degree, but when the line is finally crossed all hell is going to break loose.
Like blackmail, this sort of threatening behavior escalates if the “victim” gives in. The USA does this only because it gets away with it. The USA must be stopped.
May 1 will be a busy day in Venezuela also. The fantasy involves switching Iranian oil for stolen Venezuelan oil.
The level of US hubris and stupidity is beyond repair.
EVERYTHING in America domestic and foreign policy revolves around protecting the dollar as the world’s reserve currency – which allows America to keep using its magic printing press and “print” as many dollars as its government, and system, need. And that’s a lot of dollars.
For America, protecting the fiat dollar, is imperative, non-negotiable – something that has to be done at all costs.
Any country that tries to “go around” the dollar in international trade is going to be punished or threatened or blackmailed. That’s what’s happening here.
‘It’s deja vu all over again’ or are we reliving the stupidity of the 1930’s Smoot–Hawley Tariff Act?
F_ck you USA…
hundreds of billions lost for big companies cause of all the sanctions going on for over a decade all for israel
Asinine.
Do you really think that China gives a shit what the US does. They have the power to foreclose on the US at any time.