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How important is oil and the price of oil to this administration, Julian?

Speaker1

Julian Lee

Oil is clearly very important to the administration, evidenced by bizarre contradictory actions: credible intelligence shows Moscow helping Iran target drones against US allies while US eases sanctions on Russian oil that were starting to bite the Kremlin's war chest.

FT reports France and Italy opened talks with Iran to secure safe passage through Strait of Hormuz; White House is throwing everything at this including releasing reserves and relaxing Jones Act - to what degree do these keep a ceiling on oil prices or is it just about the strait?

Speaker1

Julian Lee

In the long term it's all about the strait; releasing stockpiles puts additional oil on market but can't continue forever due to finite reserves; can buy time and keep oil around $100/barrel for a couple of weeks.