2751. The Political Economy of Oil in the U.S.-Iran Crisis: U.S. globalized oil interests vs. Iranian regional interests
- Author:
- Thomas W. O'Donnell
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- The New School Graduate Program in International Affairs
- Abstract:
- In the U.S.-Iran nuclear crisis, U.S. motivations stem from its role as protector of today's market-centered, global oil system, herein "The One Global Barrel." This market itself is the principal basis of global energy security today, unlike the political-economics of the old neo-colonial system. But, most light-oil reserves are in P ersian Gulf states— Saudi Arabia, Kuwait, the UAE, Iran and Iraq. U.S. Grand Strategy prevents any from projecting power affecting another's production and undermining the open market. Hence, Iraq was driven from Kuwait, placed under sanctions and the Ba'athists overthrown. Iran alone now projects power independently. Its nuclear program is a gambit for a Grand Bargain to lift oil sanctions without surrendering Regional power status, or to accomplish this asfait accompli. A future national-democratic Iran could find U.S. limits on sovereign power equally obnoxious. These underlying oil-market interests must be publically recognized to advance negotiation of the present crisis.
- Topic:
- Oil and Bilateral Relations
- Political Geography:
- United States, Iran, Middle East, Kuwait, and United Arab Emirates