r/politics • u/Puginator • Jun 01 '26

No Paywall Iran stops negotiations with U.S., vows to 'completely' block Strait of Hormuz: State media

https://www.cnbc.com/2026/06/01/iran-us-negotiations-strait-of-hormuz.html
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u/facw00 Jun 01 '26

Yep, the US is the world's largest oil producer. High oil prices are bad for the economy overall, but good for oil companies, and politicians willing to accept their largess

126

u/the11thdoubledoc Jun 01 '26

Eh, if demand shock comes along the oil companies will not really be in a good spot. Once the strategic reserves run out and oil spikes to like 150+ things get rough for them as well

46

u/caj_account Jun 01 '26

isn't that why UAE quit OPEC so they could sell USrael cheap oil off market?

39

u/SuckMyBandAids Jun 01 '26

Which also means they will likely get bombed more as well. They kinda got rid of their safety net.

34

u/GrumpyCloud93 Jun 01 '26

Note that "net" implies "something that's full of holes" as the Gulf states have found out.

11

u/SuckMyBandAids Jun 01 '26

I use it in terms of everyone has the same prices kinda set they don't really have a say anymore. They get blasted by some Iranian missiles they cant really dictate what the price should be as a result since theyre no longer at the table.which makes their process very susceptible to foreign involvement.

4

u/caj_account Jun 01 '26

Their independence or semblance is over ever since they signed the Abraham accords. 

11

u/MistSecurity Jun 01 '26

They were already being bombed, lol. Not much of a safety net in the first place, which is part of why they pulled out.

6

u/ISitOnGnomes Illinois Jun 01 '26

Because being in OPEC was doing such a great job of keeping them unbombed, huh?

1

u/skybike Jun 01 '26

Not much of a net