I went a small bet long on oil, expecting a conflict in the Straits of Hormuz. Now the parliament in Iran is passing a law to close the Straits as a reaction to the oil embargo placed on it by the US and Europe, so the oil jump might be a bit later on.
Iran has not broken any laws so the embargo placed on it in support of Israel is illegal. How that pans out I don’t know but the argy-bargy will start sooner or later. I don’t believe Israel will attack Iran because of the damage Iran can inflict on it. And I don”t think Americans will attack as Obama knows oil will jump to $150 a barrel and this is an election year. So its a game of chicken to see who blinks first.
© 2012 — Stuart Wilde.
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