Before Congress headed home for spring recess, the Senate, with a rate vote of 100, approved President Obama’s new round of sanctions designed to deter Iran’s nuclear ambitions. The president’s decision was based on an analysis of current oil supply and the likely effect of further sanctions on prices. The Senate also shot down the president’s bid to reduce subsidies to oil producers.
Oil prices have climbed this year amid lingering tensions with Iran, with the price of gas now averaging around $3.92 a gallon—and experts are warning more increases are on the way. The U.S., France and other nations are considering the release of some emergency oil supplies to stop further rises in prices. Experts are skeptical about the impact tapping the U.S. Strategic Petroleum Reserve would have on prices. Reuters reports that with this decision, timing is everything.