U.S. lawmakers poised to deal deeper blow Iran's oil exports

PanARMENIAN.Net - U.S. lawmakers are embarking this summer on a campaign to deal a deeper blow to Iran's diminishing oil exports, and while they are still working out the details, analysts say the ultimate goal could be a near total cut-off, Reuters said.

Such an extreme goal would risk antagonizing China and India, the biggest remaining buyers of Iranian crude, and could push oil prices higher in a hit to the global economy.

Iran denies its nuclear program is aimed at building a bomb, but skeptical Western powers have become increasingly frustrated and Israel has said it could take military action if diplomacy and sanctions fail to rein in Tehran's nuclear ambitions.

Both parties in the U.S. Congress are pressing for tougher sanctions, betting that a resurgence in U.S. oil output and signs of ample global supply will prevent prices from rising.

Last month, during a House of Representatives committee meeting on a bill toughening sanctions, a new clause was inserted that for the first time would require importers to cut purchase of Iranian crude by a specific volume: 1 million barrels per day (bpd) within one year.

But here's the catch: Iran's crude exports already fell to 700,000 bpd in May, raising questions about what the starting point for such a target would be.

The new language has yet to be incorporated into the official text of the bill and may change. At the hearing, lawmakers said the measure was meant to cut shipments by two-thirds, suggesting last year's 1.5 million bpd export was the starting point and 500,000 bpd the goal.