Forced into a humiliating U-turn amid a potential global economic meltdown, the Trump administration announced today that it may remove sanctions on Iranian oil already at sea.

Treasury Secretary Scott Bessent told Fox News that the move to free up 140 million barrels of oil was aimed at preventing China gaining from the situation. “That’s about 10 days to two weeks of supply that the Iranians had been pushing out that would have all gone to China,” he said. “In essence, we will be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days as we continue this campaign.”

He also noted that the U.S. government was considering a unilateral release of its oil reserves, in order to calm the market, which has seen prices almost double from $53 per barrel in January to $97 today.

“When we go through, as we plan, to unsanction the Iranian oil, that oil will go up to a market price, and it will end up in places other than China. It can flow into Malaysia, Singapore, Indonesia, Japan, India, who have been good actors in this,” Bessent added.

No matter how the Trump administration spins their move, there is no doubt that this represents an embarrassing climb down – one which drew mockery on social media. “This is literally the dumbest war in human history. No hyperbole,” said Aaron Bastani of Novara Media. “Next up: US asks Iran to join anti-Iran coalition,” joked satirist Karl Sharro.

In response to U.S. and Israeli attacks that killed its supreme leader, Ayatollah Ali Khamenei, Iran closed the Strait of Hormuz on March 2. The narrow sea passage between the Islamic Republic and Arabia is a major choke point of global trade, through which around one-fifth of the world’s oil and gas supply flows.

The result has been economic and political pandemonium, which Trump administration officials appeared not to have anticipated. “Iran War Will Lower Energy Prices” ran the headline of a March 12 Wall Street Journal article penned by Peter Navarro, Trump’s Senior Counselor for Trade and Manufacturing.

Trump appears to have believed that his Iran attack could be completed within hours, and with little blowback or fallout. Instead, the Islamic Republic has been able to hit American bases across the region, spread panic throughout the Gulf States, and create shockwaves in the global economy.

In response, Trump demanded his NATO and Asian allies come to his aid, and send their armed forces to the region to forcibly open the strait. Declaring it a “very small endeavor,” he stated:

“I really am demanding that these countries come in and protect their own territory because it is the place from where they get their energy. And they should come and they should protect it. You could make the case that maybe we shouldn’t be here at all, because we don’t need it.”

Instead, however, his allies responded with a resounding “no.” “Canada is not participating in the offensive operations of Israel and the United States, and will not, ever,” Prime Minister Mark Carney said. German Defense Minister Boris Pistorius was equally adamant; “This is not our war. We have ⁠not started it. What does Donald Trump expect a handful or two handfuls of European frigates to do in the Strait of Hormuz that the powerful U.S. Navy cannot do?” he asked.

Most alarmingly for Trump, however, was the reaction from Belgian prime minister, Bart De Wever. In an interview with local newspaper, L’Echo, he stated that Washington’s Iran attacks will force Europe to come to a quick and independent agreement with Russia, in order to avoid financial ruin amid an impending energy crisis.

“We must normalize relations with Russia and regain access to cheap energy. That is common sense,” he said, adding, “In private, European leaders agree with me, but no one dares to say it out loud. We must end the conflict in the interest of Europe, without being naïve towards Putin.”

Trump has said that he is not worried that this war will turn into another Vietnam. Yet, with oil prices surging, public resentment mounting, a global economy potentially on the brink, and key allies openly rebelling against his dictates, it is quite possible that this conflict could spiral out of Washington’s control and do similar damage to the American empire.

The post Embarrassing Pivot: US Considers Dropping Iran Oil Sanctions Amid War appeared first on MintPress News.

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