alt Hacker NewsIt’s a simple calculation though and not talked about enough. USA went to war in Iraq 25 years ago thanks to the oilmen in charge at that time. For all the political bluster about Iran and gas prices, $100 oil makes them hugely more profit than $60 oil. Of course producers and shareholders of American oil companies want that extra free money. They’re not pumping oil out of the ground and keeping it at a low price just to be benevolent to the American consumer.
Replies
I think that is a contributor, but the root cause of the Iran war was Netanyahu goading a simple person into it. The US military and intelligence community knew the risk of this, told everyone not to do it, and they did it anyway.
(if one is some combination of unsophisticated, irrational, and vain, and in a position of power, they will eventually be exploited by someone more rational and sophisticated, imho)
It's more complex than that. US crude oil extraction companies don't want prices to climb too high as longer term that destroys demand and encourages customers to find alternatives. Something in the $75–80/bbl range for WTI crude is probably optimal to maximize long-term industry profits.