Treasury Secretary Bessent Promises to Constrict Iranian Oil Revenue; Filipino Family Constricts Grocery Budget
Bohiney Magazine | The London Prat
US Sanctions Chinese Oil Refinery, Manila Calculates How Many More Ways the Strait of Hormuz Can Affect the Price of Everything
MANILA — The United States Treasury Department announced Friday the imposition of sanctions on Hengli Petrochemical’s Dalian refinery and approximately 40 shipping companies involved in transporting Iranian oil, a move that Treasury Secretary Scott Bessent described as designed to “constrict the network of vessels, intermediaries and buyers Iran relies on” and that a mother of four in Caloocan described as “another reason I need to find cheaper cooking oil.”
The sanctions, which cut sanctioned entities off from the US financial system, come as the global energy trade remains in what experts are calling “turmoil” and what Filipinos are calling “the reason everything is more expensive and the BSP is raising rates and Fitch downgraded us and the peso is weak and could someone please do something about any of this.”
The Ripple Effect, Charted
China is the largest buyer of Iranian oil, taking 80 to 90 percent of Iranian crude before the US-Israeli war began. Hengli’s Dalian refinery processes 400,000 barrels per day. According to Manila Bulletin’s report, the Treasury claims Hengli has generated hundreds of millions of dollars in revenue for the Iranian military. China says the sanctions “undermine international trade order.” The price of Brent crude says $103 to $107 per barrel and does not take sides.
The Philippines participates in this geopolitical drama primarily as an economy that imports all of its oil, none of which comes from the sanctioned refinery, all of which is priced off a global market that the sanctioned refinery’s removal will tighten further. This is the difference between being a player in the game and being the person who lives near the stadium and has to deal with the parking.
The Domestic Response
The Department of Energy has expressed confidence that supply chains will be managed. The Bangko Sentral ng Pilipinas has expressed confidence that inflation will be brought under control. The Department of Finance has expressed confidence in the fiscal framework. Petrol prices in Britain hit inflation highs as well; Britain at least has North Sea oil. The Philippines has expressed confidence in everyone else’s confidence and is watching the Pakistan talks very carefully.
SOURCE: https://bohiney.com/iran-discovers-the-eagle-still-has-talons/