Washington: Iran is expected to regain access to international oil markets under an emerging diplomatic framework between Washington and Tehran, the Trump administration said on Sunday, a development that could have major implications for global energy prices and oil-importing countries such as India.
Speaking on ABC’s “This Week”, US Energy Secretary Chris Wright said the resumption of Iranian oil exports would be among the immediate outcomes of the ongoing negotiations, even as talks continue over Tehran’s nuclear programme.
“Iranians have been selling oil most of the last 47 years,” Wright said, adding that Iranian exports had declined significantly during the first Trump administration but rose sharply during the Biden administration.
He said Iran would regain the ability to sell its oil again, noting that the country’s exports could return to more than 1.5 million barrels per day, a level close to volumes recorded before the recent conflict.
Wright said the United States had shown during the confrontation that it had the capability to completely halt Iranian oil exports, giving Washington leverage in the negotiations.
“We proved to them for two months we could cease them from selling a drop of oil,” he said.
The administration also sought to assure consumers that energy markets were stabilising after weeks of uncertainty linked to fighting in the Gulf region and disruptions around the Strait of Hormuz.
Wright said oil and natural gas flows through the strategic waterway had already returned to normal levels. He added that increased US production, higher output from Venezuela and cooperation among major energy producers would help push energy prices lower.
The possibility of renewed Iranian oil exports has emerged as one of the most debated aspects of the proposed agreement.
Former Obama National Security Adviser Susan Rice criticised the arrangement, arguing that Tehran was receiving major economic benefits before reaching a comprehensive settlement.
“As the secretary just acknowledged, Iran, as of the signing of the agreement, so on Thursday, is now able to sell all of its oil and all of its oil products on the market unimpeded,” Rice said.
She also criticised the administration for allowing Iran access to the international banking system and frozen assets, calling the move a “jaw-dropping, horrific surrender”.
Rice argued that such concessions should have been linked to a final agreement rather than provided at the beginning of negotiations.
The disagreement reflects a wider debate in Washington over whether economic incentives should be offered to encourage Iranian cooperation or withheld until Tehran accepts stricter limits on its nuclear and military programmes.
With IANS inputs