Is Iran vulnerable to a cut-off in refined petroleum supply?
Confrontation with chests stuck out is the usual way to convince bystanders and protagonists of strength. An inkling of this was given in an interesting comment by the U.S. Department of Energy and reminded the market that Iran, while a significant exporter of crude oil, has inadequate refining capacity to meet its domestic refined fuel needs. Any interruption in trade flows, therefore, due to sanctions or hostilities would also interrupt gasoline imports into Iran as well as crude exports coming out. The D.O.E. may be pointing out that an interruption in energy flows would also deprive Iran of refined product. Is this a potential threat from Western refineries? With Iran’s growing oil relationship with China it is most likely that China will supply Iran refined oil and petroleum. It may take time but we expect it has been proposed already. For China the benefit would be to get a valuable long-term supply for China out of U.S. hands. Such threats from the U.S. will backfire on them. Ve
