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Showing posts with the label oil prices

Rise in the price of world food prices and oil

The USA imposed sanctions on Iran after the Shah was ousted. The result of those sanctions was that Iran's main export which is oil  was stopped - at least the USA was not importing Iranian oil.  Libya was charged with terrorism and trying build nuclear weapons - sanctions were imposed on it too. But Libya managed to bribe itself out of that mess. Some years later Iraq and Iran were at war. Iraq needed money to fund its war  - it bought the latest weapons the USA was willing to offer. As long as the war lasted- There was more Iraqi oil into the world market. There was oil glut- the  price of oil crashed. The oil companies in the USA were the ones which suffered the most, which was unforgivable. The oil glut was worse than an oil embargo. The oil embargo made the oil companies rich a glut made them poorer. The solution lay in a controlled flow of oil, particularly Iraq. Iraq suffered an oil for food system. It had to supply oil in return for food. In 1998 both Indi...