. June 30, 2008 SouthAmerica: It is time for Iran to answer with a preview of things to come in case of such an attack. Right now Iran can stage a major accident on the Straight of Hormuz and close that shipping route for a week or two until they get things under control â just to give a little taste to the rest of the world of what would happen when the Straight of Hormuz is closed for a number of months and no oil can be shipped from that area of the world. The world would not blame Iran for such an event since the world knows that the United States and Israel have an official policy of pre-emptive strikes and Iran would just be playing by the rules set by these countries and their dangerous game. Besides this little game would help push the price of oil above US$ 200 per barrel, and Iran could be laughing all the way to the bank to the tune of billions of extra oil revenues. At this point the Iranians have to push one notch up this game of chicken and they can't just sit and watch, they need to do something to show that they mean business and to shake up the oil markets - let the fireworks start. Iran has to play their part in this effort to bring the price of oil to $ 200 per barrel and according to an article published by the Financial Times today Gazprom president is forecasting that oil prices will reach $ 250 per barrel in the near future. Let's put this show on the road. Quoting from the enclosing article: "Foreign ministers from the Group of 8 nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the country faces an imminent Israeli strike. John Bolton, the former U.S. envoy to the United Nations, has speculated that Israel would strike Iran between the U.S. presidential election in November and the inauguration in January.â ********* âOil rises to record on concerns about Iranâ Bloomberg News Published: June 30, 2008 London: Crude oil rose to a record above $143 a barrel on Monday on speculation the dispute over Iran's nuclear program may disrupt supply from the second-largest OPEC producer. Pressure on Iran to end its uranium enrichment program and the falling value of the U.S. dollar may drive prices to $170 a barrel, the president of the Organization of Petroleum Exporting Countries, Chakib Khelil, said Saturday. Oil is headed for its biggest six-month gain since 1999 as investors shun equities for commodities, looking for a hedge against a weaker dollar and quickening inflation. "It is a risk Iran will take any measures to cut flows through that important region and the market is reacting to that," said Andy Sommer an analyst with HSH Nordbank in Hamburg. "There are some funds flowing from the equities side to commodities." Crude oil for August delivery rose as much as $3.46, or 2.5 percent, to $143.67 a barrel in electronic trading on the New York Mercantile Exchange. It was at $141.95 a barrel at 1:24 p.m. in London. Brent crude oil for August settlement rose as much as $3.60, or 2.6 percent, to $143.91 a barrel on London's ICE Futures Europe exchange, the highest since trading began in 1988. It was at $142.06 a barrel at 12:26 p.m. London time. Foreign ministers from the Group of 8 nations last week suggested more talks to coax Iran into opening its nuclear program to inspectors, after speculation the country faces an imminent Israeli strike. John Bolton, the former U.S. envoy to the United Nations, has speculated that Israel would strike Iran between the U.S. presidential election in November and the inauguration in January. Nigeria's rank among producers in the Organization of Petroleum Exporting Countries has slipped from sixth to seventh behind Angola amid a renewal in militant violence. Chevron, Royal Dutch Shell and Eni have all closed fields there this month. "Tensions ratchet up in Iran and troubles continue in Nigeria, drawing funds into the market," Robert Montefusco, a broker at Sucden in London, said before the latest record was reached. "The weak dollar is also helping. The market does not want to break down just yet." The European Central Bank is expected to raise interest rates a quarter-percentage point to 4.25 percent, according to a survey of economists by Bloomberg News. The dollar has declined 7.3 percent this year against the euro. Avoid the dollar "at all costs," the investor Jim Rogers said in Shanghai Monday. "The best investments in 2008 are commodities and natural resources. Agricultural prices have much higher to go over the next decade. We have a shortage of everything including seeds." Hedge fund managers and other large speculators almost doubled their bets on rising prices in the week ended June 24, according to U.S. Commodity Futures Trading commission data. Source: http://www.iht.com/articles/2008/06/30/business/30oil.php .
. July 1, 2008 SouthAmerica: Today not only the news is buzzing with reports that Israel is going to attack Iran with their fleet of F-16âs, but Bloomberg News just published a story saying that the US wonât allow Iran to shut the Strait of Hormuz. Iran has two choices at this point â 1) In the first option: prove that Iranâs government is more incompetent than the current US government and Iran would band over and take the pounding from an air strike attack from Israel. And after that attack Iran would be just the laughing stock of the Middle East and the world. 2) In the second option: Iran proves to the world that it means business and in a preemptive action Iran closes the Strait of Hormuz until the United States and Israel back off and stop their empty threats about attacking Iran. If Iran doesnât do something right now to close the Strait of Hormuz and show that they mean business then it becomes clear that Iran is completely impotent and powerless to do anything about the threats from the United States and Israel. If Iran manages to close the Strait of Hormuz then Iranâs status would rise in global affairs and Iran would laugh all the way to the bank with the price of oil skyrocketing to the range of US$ 200 to US$ 250 per barrel. The time for Iran to show to the world of what they are capable of it is now by closing the Strait of Hormuz immediately. That is the only language the United States and Israel understand â or you have the power to do it or you donât. By shutting down the Strait of Hormuz that would be the ultimate show of strength from Iran to the rest of the world â and it would be interesting to see the Bush administration's reaction to the closure of that shipping lane. But the question is: Is Iran capable of shutting down the Strait of Hormuz? And only Iran can answer that question with the implementation of one of the options available to Iran that we have been discussing on this forum for a long time. The time to play nice is over - it is time to go for the jugular vein. ********* Quoting from article published by Bloomberg News on July 1, 2008: ââ¦Hormuz Strait The U.S. won't allow Iran to shut the Strait of Hormuz, through which about 40 percent of Middle East oil is shipped, Lieutenant Nate Christensen, a spokesman for the Fifth Fleet, said yesterday. Among the Organization of Petroleum Exporting Countries only Saudi Arabia produces more than Iran. The fleet's comments were in response to remarks by the head of Iran's Revolutionary Guard two days ago that his country may close the strait if attacked by Israelâ¦.â Source: http://www.bloomberg.com/apps/news?pid=20601087&sid=aq4YqZ.XKV.E&refer=home .