September 16, 2007: Greenspan Says Iraq Invasion Centered on Control of Iraq’s Oil

Alan Greenspan, the former head of the US Federal Reserve, charges in his newly published memoir that the US invasion of Iraq was largely driven by the Bush administration’s desire to control Iraq’s oil reserves. Greenspan says in his book The Age of Turbulence: Adventures in a New World, that he is “saddened that it is politically inconvenient to acknowledge what everyone knows—the Iraq war is largely about oil.” [Agence France-Presse, 9/16/2007; Sunday Times (London), 9/16/2007] In subsequent interviews with the press, though, Greenspan has backed off of his assertion a bit. Iraq’s oil was “not the administration’s motive,” he now says, and goes on to say that the overthrow of Saddam Hussein was essential for the US’s economic stability. “I’m just saying that if somebody asked me, ‘Are we fortunate in taking out Saddam?’ I would say it was essential.” He adds, “I have never heard them basically say, ‘We’ve got to protect the oil supplies of the world,’ but that would have been my motive.” He says he made that argument to White House officials, and one of them told him, “Well, unfortunately, we can’t talk about oil.” [Washington Post, 9/17/2007] Greenspan says he advocated the overthrow of Saddam Hussein, not because of weapons of mass destruction, but because he was convinced Hussein wanted to control the Strait of Hormuz, through which much of the world’s oil passes. That would enable Hussein to threaten the US and its allies, a situation Greenspan found untenable. [Columbia Journalism Review, 9/17/2007] “Iraq was a far greater threat than Iran to the world scene,” he says. [New York Times, 9/17/2007] Greenspan says he believed Hussein should go, but not necessarily through military action. “I wasn’t arguing for war per se. [But] to take [Hussein] out, in my judgment, it was something important for the West to do and essential, but I never saw Plan B”—an alternative to war. In August 2002, seven months before the invasion of Iraq, a National Security Presidential Directive signed by Bush stated as one of the objectives of the invasion was “to minimize disruption in international oil markets.” Greenspan says, “If Saddam Hussein had been head of Iraq and there was no oil under those sands, our response to him would not have been as strong as it was in the first Gulf War. And the second Gulf War is an extension of the first. My view is that Saddam, looking over his 30-year history, very clearly was giving evidence of moving towards controlling the Straits of Hormuz, where there are 17, 18, 19 million barrels a day” passing through. Disruption of even 3 to 4 million barrels a day could have translated into oil prices as high as $120 a barrel, Greenspan now says, and that would have triggered “chaos” in the global economy. Ousting Hussein achieved the purpose of “making certain that the existing system [of oil markets] continues to work, frankly, until we find other [energy supplies], which ultimately we will.” [Washington Post, 9/17/2007]