Hints about the state of play as Iran nuclear talks start Monday
Israel is pushing against a deal
If Biden's real priority is to lower oil prices, then the obvious answer is bringing Iran's oil back to market.
That won't be easy. With oil prices high, Iran has significant leverage and its new government doesn't appear to be in a rush. Moverover, the WSJ reports that Israel is warning the White House not to offer partial sanctions relief in exchange for a partial nuclear rollback.
Israel is very concerned that the U.S. is setting the stage for what they call a 'less for less' agreement," a senior Israeli official told The Wall Street Journal. "Such an agreement would be detrimental and would only benefit the Iranian regime...It would be an enormous gift to Iran's new, radical and IRGC affiliated regime," the senior Israel official said, referring to Iran's Islamic Revolutionary Guard Corps.
No one is expecting a quick resolution or a quick return of Iranian barrels but it's all setting the stage for a fascinating week in the oil market.