The US is caught in the crossfire of the oil wars

When America used a drone to take out an Iranian general a few weeks ago, it triggered a standoff between the two countries that barely moved oil prices. America was seen to have passed the first test of what Donald Trump hailed as ‘energy independence’. The US oil industry has surged over the past five years, making it the world’s biggest oil producer, and now a net exporter. The hope in DC has long been that this would turn the tide — not just on energy costs, but on the power dynamics in historically sticky relationships between democracies and dictatorships. By becoming energy independent, America decoupled itself from the Middle East; by exporting its energy, it was starting to liberate the world economy too.

But all along, America had a vulnerability. The Saudi, Russian and Iranian oil companies were either the property of the government or in the hands of their crony friends.