Daily Revolt

October 26, 2007

Strike on Iran Would Roil Oil Markets, Experts Say

Another great reason not attack Iran. Oil is already at record highs. Then again, maybe that's what the oilman Bush wants:
A U.S. military strike against Iran would have dire consequences in petroleum markets, say a variety of oil industry experts, many of whom think the prospect of pandemonium in those markets makes U.S. military action unlikely despite escalating economic sanctions imposed by the Bush administration.

The small amount of excess oil production capacity worldwide would provide an insufficient cushion if armed conflict disrupted supplies, oil experts say, and petroleum prices would skyrocket. Moreover, a wounded or angry Iran could easily retaliate against oil facilities from southern Iraq to the Strait of Hormuz.

Oil prices closed at a record $90.46 a barrel in New York yesterday as the Bush administration tightened U.S. financial sanctions on Iran over its alleged support for terrorism and issued new warnings about Tehran's nuclear program. Tension between Turkey and Kurds in northern Iraq, and fresh doubts about OPEC output levels also helped drive the price of oil up $3.36 a barrel, or 3.8 percent.

Meanwhile, preparations for war continue:
U.S. Defense Secretary Robert Gates on Thursday characterized U.S. military planning for a strike on Iran as "routine".

"I would characterize it as routine," Gates told reporters on a flight en route to Washington, when asked about any U.S. planning for military action against Iran.

AddThis Social Bookmark Button

Links to this post:

Create a Link

<< Home