Response to the U.S. Iran Agreement

In response to the U.S. Iran agreement, Oil Change International US Program Manager, Allie Rosenbluth, said: 

“Any agreement that reduces further violence is welcome. But this announcement should not be mistaken as the end to the crisis, given Israel has vowed to remain in occupied areas of southern Lebanon indefinitely, while violence continues in Gaza and the West Bank. As attention turns to the reopening of the Strait of Hormuz and falling oil prices, we should not lose sight of the devastating human toll this conflict has inflicted across the region, nor the profound economic disruption it continues to cause around the world.

“The rapid rise and fall of oil prices in response to military escalation and diplomatic announcements is a reminder of how exposed the global economy is to fossil fuel volatility. For millions of people, this crisis has meant loss, displacement, food insecurity and higher cost of living. For fossil fuel companies, it has meant windfall profits.

“Oil Change International estimates that if U.S. oil prices average around $90 per barrel through the end of the year, U.S. oil companies could make an additional $38 billion in windfall revenues from crude oil exports alone as a result of Trump and Netanyahu’s war on Iran. While households around the world have been hit by higher fuel, energy and food costs, oil companies are cashing in billions.

“The Strait of Hormuz may be reopening, but this crisis has once again exposed fossil fuels as a source of conflict, chaos, volatility and disruption. While communities bear the costs, oil companies profit from the instability. Once renewables are installed, sunlight or wind does not become more expensive because of geopolitical conflict. The most durable form of energy security is reducing exposure to fossil fuels  altogether, and making a just transition to renewable energy.”