Wednesday, January 4, 2012

Oil Prices Rising; Fears of Naval Confrontation in the Persian Gulf

Oil prices soared on Tuesday after the commander of Iranian armed forces issued an explicit warning to US Navy aircraft carrier USS John C. Stennis to stay out of the strategic Strait of Hormuz. Brent crude future hit $112, and gold markets closed at their highest level in 10 weeks. An average of 17 million barrels of crude oil is shipped through the Strait every day.

The US dismissed the threat as a bluff, saying that it would continue to deploy its ships in the Persian Gulf “as it has for decades.”

Within hours of the US response, the deputy commander of IRGC, Maj. Gen. Hossein Salami, said in Tehran that Iran’s confrontation with the West had reached a critical point.

“Our position against the enemy [the US] has moved from strategic to operational,” Gen. Salami said [Fars News Agency, 3 January].

The US could soon have three aircraft carriers in the region: the returning Stennis, the USS Carl Vinson and the USS Abraham Lincoln.

Meanwhile, the Central Bank of Iran (CBI) flooded the foreign currency market in Tehran with dollars to stop the freefall of the national currency rial. Fars News Agency reported that the CBI is injecting another $200 million into the currency market on Wednesday to stabilize the rial and preventing it to slide below the parity rate of 16,000 per dollar.


Anonymous said...

These are the risks of speculating on dollar appreciation. You never know when the central bank will step in and ruin your game.

But my question is - How do Iranians buying dollars at the bazaar know these dollars are real? There are very good counterfeits out there!

Anonymous said...

Gasoline is America's no#1 export in 2011.

Anonymous said...

The US is devolving back into an oil state with little industry. Iran is evolving from an oil state into an industrial state.

Anonymous said...

USA New Megabase in Afghanistan

The facility’s remoteness and proximity to the border with Iran makes it the perfect location for a variety of ops against Tehran. In fact, its one of the few major U.S. bases that doesn’t appear to be updated when veiwed through satellite viewers like Google Maps.

Author: Galen Wright said...

Perhaps this was the real objective of Salehi's comment, an attempt to drive oil prices higher...

Anonymous said...

Iran's regime has done well in "cultivating its mushrooms"

The regime appears to have suceeded in turning the average Iranian into a death, dumb and blind drone!


Potential Attack Threatens Peaceful Movement for Change

January 3rd, 2012

Ayatollah Ruhollah Khomeni:

“War is a divine blessing, a gift bestowed upon us by God. The cannon’s thunder rejuvenates the soul.”

Anonymous said...

Anon 11:31 AM

And where did you get that misinformation from Mr know it all?

Anonymous said...

From the person who pointed out how America's biggest export now is gasoline. That's all they make now, airplanes and gasoline and once China gets into those businesses they won't even have that.

Gifted one said...

If Obama and Sarkozy think picking a fight with Iran on the eve of their respective elections is a good idea, then i wish them luck. let's see how their electorate respond to rising unemployment, rising food inflation, rising energy bills, and rising petrol prices.

Iran should begin to show Europe, the US, the Saudi and Gulf pimpdoms, that it's consent is required for regional stability. IRI has been on the receiving end for too long. Time to raise the stakes.

Anonymous said...

Why Iran's ayatollah-in-chief always gets it wrong

Anonymous said...

Iran should just start blowing up some pipelines and oil wells in the Persian Gulf Sheikdoms...Problem solved :)

This insanity will end badly for all involved...With gas prices going up, Obama will be toast in the elections..Mark it.

The EU hoped Libya could cover the losses but the rebels are now up in arms again in Tripoli. Never say it's over until it's over ;)

Anonymous said...

Anon 2:07 PM.....Dreaming comes easy and dreaming after all is for dreamers with nothing else left but to dream their life away into the never land of dreams.

Sweet Dreaming.

Anonymous said...

Anon 5:45 PM

Wow! What a great idea you have.
Why not at the same time attack Israel and the Turkish NATO missile base and see what will happen to Iran afterwards.

You people are real clueless keyboard warriors.