Two posts in a row referencing Biden. What fun!
During his appearance on This Week, Biden said that embargoing Iran's oil production would be an option for putting the maximum pressure on Tehran to forgo its nuclear ambitions. Iran's current production is around 4.5 million barrels per day (mbd), worldwide consumption is near 84mbd, and worldwide supply is above 85mbd. Given how inelastic the price of oil has proven to be, a shortfall of 3mbd on the world market could have drastic consequences.
While it may also be true that Iran could not weather such an embargo, since according to Biden "all their durable goods are imported," it is certainly the case that low oil costs are the basis of America's economy. A radical price hike would do us serious damage, perhaps as much as the Iranians, and is a reckless policy. Don't mess with my oil until we've got a President seriously putting us on the road to energy independence.
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