Iran War and Oil

Oil has now reached $142 per barrel. Recall that a short time ago people wondered if it would ever hit $100 per barrel. Clearly there is not a direct proportionate relationship between the price of oil and the price of gas. If there were we would be paying significantly more for gas.

With a looming war with Iran in the public consciousness, oil prices undoubtedly would be affected by such a calamity.

Here an Iranian general highlights that point. Certainly this is one way to play the cards in your favor. It is a manipulation but it is also a considerable possibility. It is a line drawn in the sand and surely American military experts might dispute any assumptions.

So many economic, social, and political structures have been disrupted or destroyed during the Bush regime and by the Bush regime, why not shoot for the stars. I think of Bush as the Nero President. He seems oblivious.

Gulf News: Iran to control Gulf oil route if attacked

"If there is a confrontation between us and the enemy from outside the region, definitely the scope [of the confrontation] will reach the oil issue," Jafari said.

"After this action (of Iran imposing controls on the Gulf waterway), the oil price will rise very considerably and this is among the factors deterring the enemies," he said.

Here is an article from June 2006 on oil and an Iran War.

BBC: Iran war 'could triple oil price'

World oil prices could triple if the West's stand-off over Iran's nuclear programme escalates into conflict, the Saudi Arabian government has warned.

The Saudi ambassador to the US, Prince Turki Al-Faisal, said such an event could send prices spiralling from their current level of about $70 per barrel.