Trump reportedly plans to disrupt Iran oil exports by halting vessels at sea

This continues his push to exert “maximum pressure” on Iran and to drive its oil exports to zero amid the ongoing geopolitical strife. Trump is said to be considering a plan to stop and inspect all Iranian oil tankers by looking at ways for allied countries to do so at critical chokepoints and sea lanes. One of the sources said that:

“You don’t have to sink ships or arrest people to have that chilling effect that this is just not worth the risk. The delay in delivery instills uncertainty in that illicit trade network.”

Two other sources are saying that the National Security Council is already looking into possible inspections at sea under the auspices of the Proliferation Security Initiative – which is aimed at stopping the trafficking of weapons of mass destruction. The idea here is to use that to call on foreign governments to target Iran’s oil shipments at Washington’s request.

With oil prices being as low as they are now, perhaps it gives some added room for Trump to try something bewildering here. But we’ll see.

This article was written by Justin Low at www.forexlive.com.