Right Web

Tracking militarists’ efforts to influence U.S. foreign policy

Lower Oil Prices Will Not Turn Producers into Pushovers

The belief that lower oil prices push U.S. rivals to make concessions is mistaken and discourages U.S. flexibility in important negotiations.

LobeLog

The steep drop in the price of oil during the latter half of 2014 has generated much comment about how this development has weakened major oil-producing countries and supposedly made their governments more pliable on issues that separate them from other countries. Such commentary flows partly from the tendency of media and the commentariat to over-analyze any major development and to identify winners and losers. In the current instance it also reflects how people have happily noticed that several of the significant producers whose revenues have been most adversely affected by the price decline are countries commonly identified as adversaries of the United States, including Venezuela, Russia, and Iran. Edward Luttwak remarks that the price decline “is knocking down America’s principal opponents without us even trying.”

The commentary reflects in addition a belief that is in evidence whenever similar hopes are placed on the consequences of someone else’s economic pain when that pain is imposed not by the market but instead by sanctions. The belief is that there is a reliable and positive correlation between the other country’s economic discomfort and the willingness of its government to make diplomatic concessions.

That belief is mistaken, regardless of whether it is markets or sanctions that have caused the economic and fiscal damage. It is mistaken because the presumed connection between a country’s economic discomfort and its regime’s diplomatic flexibility considers only one half of the regime’s calculations. The other half concerns whether, and how much, that regime believes it can improve its economic situation by making concessions to its adversaries. If it sees no prospect for improvement, it has no incentive to concede.

The point becomes all the clearer when, as with the recent drop in petroleum prices, it is a market that is causing the economic pain. Markets have no mechanism for pain reduction when someone changes a negotiating position or diplomatic posture. If lower oil prices really are making the leadership of Russia more willing to make concessions regarding the conflict in eastern Ukraine, what is supposed to happen regarding the prices and the pain if such concessions are made? That car-owners in the West will be so happy about this development that they will start driving more, thus burning more fuel, sending crude oil prices back up, and repairing the damage to Russian finances?

The further, usually implicit, assumption underlying false beliefs about market- induced economic discomfort leading to diplomatic flexibility in cases such as Russia or Iran is that the cumulative effect of both sanctions and lower prices will push a regime past some breaking point beyond which it ceases to resist. The notion of a breaking point has underlain other American foreign policy thinking, which has involved not only economic discomfort but also the infliction of physical pain through kinetic means. The notion was the basis for Operation Rolling Thunder, the Lyndon Johnson administration’s prolonged and escalating bombardment of North Vietnam in the 1960s. The notion is somewhat akin to the gambler’s fallacy that by persisting and playing a little longer one’s results will change for the better.

The Vietnam War example illustrates another part of the logic pertinent to such situations that is essential but commonly overlooked when people place hopes on the consequences of someone else’s pain. That part concerns the importance the other side places on the issues that are at stake. Regimes and nations will endure a great deal of pain on behalf of causes that are very important to them. Moreover, in such bargaining relationships the logic works both ways, and the relative importance to us and to the other guy of the issues at stake is critical, too. If it makes sense for us to think about the other side having a breaking point, then it would make just as much sense for the other side to think about our breaking point, even if that point is to be expressed not in intensity of pain at any one moment but instead in impatience and the duration of stalemate.

Even if the idea of a breaking point were valid, we Americans are poorly equipped to identify any such point as it applies to others, including the adversaries most at issue today. Russian foreign minister Sergei Lavrov, referring to the oil price drop, said, “We have been in much worse situations in our history, and every time we were getting out of these fixes much stronger. This will happen this time.” He’s right about Russian history, which included among other ordeals the incredibly costly fight against the Nazis in World War II. The Iranians also have had their ordeals, with the most salient and costly one for current Iranian leaders being the eight-year war that Saddam Hussein’s Iraq launched against their country.

The false hope being placed on lower oil prices and their presumed effect in softening the positions of adversaries may itself have the damaging effect of discouraging the flexibility that will be needed on the part of the United States to resolve important unresolved issues. Such flexibility, and not just contrition and concession from Vladimir Putin, will be required for even a partial resolution of the prolonged crisis in Ukraine. An even greater potential for damage concerns the nuclear negotiations with Iran. The hope for a more pained and supposedly more pliable Tehran as a result of reduced oil revenue probably is entrenching further the notion that Iran must make all remaining concessions to reach a deal. That notion, if it persists, is likely to mean the failure of the negotiations and the loss of a golden opportunity to resolve the issue and assure that Iran’s nuclear program stays peaceful.

 

Share RightWeb

Featured Profiles

Lindsey Graham (R-SC) is one of the Senate’s more vocal hawks, and one of the prime vacillators among Republicans between objecting to and supporting Donald Trump.


Ron Dermer is the Israeli ambassador to the United States and has deep connections to the Republican Party and the neoconservative movement.


The Washington-based American Enterprise Institute is a rightist think tank with a broad mandate covering a range of foreign and domestic policy issues that is known for its strong connections to neoconservatism and overseas debacles like the Iraq War.


Max Boot, neoconservative military historian at the Council on Foreign Relations, on Trump and Russia: “At every turn Trump is undercutting the ‘get tough on Russia’ message because he just can’t help himself, he just loves Putin too much.”


Since taking office Donald Trump has revealed an erratic and extremely hawkish approach to U.S. foreign affairs, which has been marked by controversial actions like dropping out of the Iran nuclear agreement that have raised tensions across much of the world and threatened relations with key allies.


Mike Huckabee, a former governor of Arkansas and an evangelical pastor, is a far-right pundit known for his hawkish policies and opposition to an Israeli peace deal with the Palestinians.


Nikki Haley, the U.S. Ambassador to the United Nations, is known for her lock-step support for Israel and considered by some to be a future presidential candidate.


For media inquiries,
email rightwebproject@gmail.com

From the Wires

The Trumpian new regional order in the Middle East is predicated on strongman rule, disregard for human rights, Sunni primacy over Iran and other Shia centers of power, continued military support for pro-American warring parties regardless of the unlawfulness of such wars, and Israeli hegemony.


A comparison of U.S. nuclear diplomacy with Iran and the current version with North Korea puts the former in a good light and makes the latter look disappointing. Those with an interest in curbing the dangers of proliferating nuclear weapons should hope that the North Korea picture will improve with time. But whether it does or not, the process has put into perspective how badly mistaken was the Trump administration’s trashing of the Iran nuclear agreement.


Numerous high profile Trump administration officials maintain close ties with anti-Muslim conspiracy theorists. In today’s America, disparaging Islam is acceptable in ways that disparaging other religions is not. Given the continuing well-funded campaigns by the Islamophobes and continuing support from their enablers in the Trump administration, starting with the president himself, it seems unlikely that this trend will be reversed any time soon.


The Trump administration’s nuclear proliferation policy is now in meltdown, one which no threat of “steely resolve”—in Secretary of State Mike Pompeo’s words—will easily contain. It is hemorrhaging in part because the administration has yet to forge a strategy that consistently and credibly signals a feasible bottom line that includes living with—rather than destroying—regimes it despises or fears. Political leaders on both sides of the aisle must call for a new model that has some reasonable hope of restraining America’s foes and bringing security to its Middle East allies.


Congressional midterm elections are just months away and another presidential election already looms. Who will be the political leader with the courage and presence of mind to declare: “Enough! Stop this madness!” Man or woman, straight or gay, black, brown, or white, that person will deserve the nation’s gratitude and the support of the electorate. Until that occurs, however, the American penchant for war will stretch on toward infinity.


To bolster the president’s arguments for cutting back immigration, the administration recently released a fear-mongering report about future terrorist threats. Among the potential threats: a Sudanese national who, in 2016, “pleaded guilty to attempting to provide material support to ISIS”; an Uzbek who “posted a threat on an Uzbek-language website to kill President Obama in an act of martyrdom on behalf of ISIS”; a Syrian who, in a plea agreement, “admitted that he knew a member of ISIS and that while in Syria he participated in a battle against the Syrian regime, including shooting at others, in coordination with Al Nusrah,” an al-Qaeda offshoot.


The recent appointment of purveyors of anti-Muslim rhetoric to the U.S. Commission on International Religious Freedom exposes the cynical approach Republicans have taken in promoting religious freedom.


RightWeb
share