Updated: Jul 17
Before the midterm elections, President Biden is attempting to control domestic fuel costs.
According to a significant independent petroleum trader, the Biden administration may let additional Iranian oil that has been sanctioned enter international markets to control domestic fuel costs as the US prepares for its midterm elections.
Mike Muller, the head of Asia at Vitol Group, told Dubai-based Gulf Intelligence on Sunday that "turning a bit greater blind eye to the sanctioned barrels moving out is perhaps something you can expect to see" if the drive to cut gas prices in America dominates the midterm elections.
According to figures released by the non-profit American Automobile Association last week, gas prices in the US have increased almost double since President Joe Biden's inauguration in January of last year (AAA). Due to limits on Russian shipments, crude oil prices have been rising recently. As Saudi Arabia increased prices for Asia on Monday, crude reached $120 per barrel.
Amid worries over Iran's nuclear program, the Trump administration reinstated sanctions on the country's oil, petrochemicals, shipping, and other industries in 2018. The window of opportunity for the Biden administration to strike an agreement with Tehran has nearly expired, according to Muller, but it might still be possible to approve the shipment of Iranian crude. In March, negotiations between Tehran and the world's powers came to a standstill. Iranian oil being transported by a Russian vessel was taken by the US in April. China is currently Iran's top oil export destination.