The kingdom could cut back its production, which has been boosted to over 10 million barrels/day at Washington's request, to make up for the fall in Iranian exports caused by sanctions. Riyadh enjoys the revenues generated by higher production, but price hikes caused by tightening supply could more than compensate the kingdom. Meanwhile, a drop in supply will cause the price at the gas pump to spike in the United States -- endangering the economic recovery and having an almost immediate impact on domestic public opinion.
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