Iran Threatens Rise in Oil Prices Due to US Actions

Iran’s supreme leader, Ayatollah Ali Khomeini, stated yesterday that US’s behavior towards the country in the nuclear uranium enrichment dispute could seriously affect the normal oil flow in the region, hinting to the fact that crude oil prices could rise to an unprecedented threshold.

An analyst with energy consultant firm Purvin & Gertz Inc., in Singapore, Kurt Barrow, commented on Iran’s power to affect the market which, in his view, could be quite destructive:
”Iran is playing hardball. We continue to have a very tight supply-demand balance so if Iran were to do anything it would definitely disrupt the market”.

Moreover, David Thurtell, a commodities strategist at Commonwealth Bank of Australia in Sydney, stated that the country will not only halt its production, but could hamper other countries in the Gulf region as well: ”They’re not just threatening to withhold their own oil. There’s a large amount of oil flowing through the Straits of Hormuz”.

Iran’s geographical position, along the Strait of Hormuz, is perfect in terms of strategic oil proximity, since the strait is a gate for exports which amount to a total of 17 million barrels a day from the Gulf region, in other terms 20 percent of the world’s oil production, with Iran pumping 3.85 million barrels a day.

On the other hand, in an interview with “Fox News Sunday” programme yesterday, US Secretary of State Condoleezza Rice stated that Iran’s threats will not ultimately become reality since the Persian Gulf survives on oil sales: ”We shouldn't put too much emphasis on a threat of this kind. After all, Iran is also very dependent on oil revenue.''

Crude oil for July delivery already rose 1.22 dollars, which means 1.7 percent, to 73.55 dollars a barrel in after-hours trading on the New York Mercantile Exchange.

 

Where's the cheap oil?

 

In my dreams

 

"Iran’s threats will not ultimately become reality "

yeah becuase the US will bomb the shite out of it and then offer a oil for food program

 

I Iran has to transfer income to bolster military ranks in premtion to a US attack, then its going to come from OIL. Its going to take aleast 4 more year for construction of a nuclear bomb by the Iranians.

Good work BUSH on pissing them of early.

 

How can you be so sure? I'm not even sure that US would win against Ahmediad. Iran has one of the worlds fastest longrange missiles and the worlds absolute fastest underwater missile(introduced in April 2006) which is able to sink any US/Israeli ship and submarine in the Gulf where Iran deploys them. US needs to evacuate every single ship in the gulf before an attack will be accepted by the defense ministry, I guess.

Iran wasn't much 20 years ago with it's 2000$ GDP per capita, but it's more than 10000$ GDP per capita today so despite the massive population increase the latest decades, the avarage Iranian is 5 times richer than 20 years ago. The theocratic government is much more effective than any social liberal whoopass government in Europe. They will be much stronger 5 years later when the bomb is fully developed.

An alternative solution to this problem is to evacuate Israel from it's 5.5 million Jews. They could probably get integrated in US, in where the antisemitism is much lower than everywhere else(except India mayby).

 

latehorn,

This depends on wheather the US military is spread to thin all ready. And ofcourse Iran maynot be building a Bomb

 

And ofcourse Australia doesn't exist

 

Dam straight we don't exist - Better stay that way.

 

secrets out. better bomb the bastards that spilled the beans..

 

I think the situation worsens from here and oil goes to $100 by the end of the summer.