The rapid military and political deterioration in Iraq highlights the frailty and incompetence of the central government in Baghdad. But it doesn’t translate into a major world oil crisis, despite the latest jump in prices amid growing concerns about potential supply disruptions.
The fallout could even have a beneficial side effect: improved U.S. relations with Iran, which has signalled its willingness to join Washington in preventing a widening sectarian war. That, in turn, could prompt a further easing of restrictions on Iran’s own oil exports.Report Typo/Error
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