Gotta love it. Read two stories in a row this morning, literally one after the other. First one reads that the US supports Europe in imposing an Iranian oil embargo (ban on Iranian crude), and that said embargo could occur “without disrupting global oil markets”. Followed immediately by an article stating that oil prices have soared because of the threatened oil embargo. Both featured by yahoo news, both on the same day. The multi-verse in action, or what? No wonder everyone is running around dazed and confused.
WASHINGTON (Reuters) – The United States supports a European proposal to ban purchases of Iranian crude and believes Tehran’s oil revenues can be choked off without disrupting global oil markets, a U.S. Treasury official said on Wednesday.
The official, who requested anonymity, said a well-timed, phased-in effort to curtail purchases of Iranian crude could avoid market disruptions, and noted that new U.S. sanctions legislation envisions a phased-in approach.
(Reporting By Timothy Ahmann; Editing by Chizu Nomiyama)
And here is the second article:
Oil prices spiked close to eight-month highs on Wednesday as the EU moved closer to an Iran oil embargo and Tehran warned the US to remove its naval forces from the Gulf.
Stepped-up rhetoric sent shivers through the markets worried that Iran might follow through on threats to disrupt shipping of Gulf oil through the crucial Hormuz Strait.
New York’s main contract, West Texas Intermediate (WTI) for delivery in February, jumped during trade to $103.74, a level last touched on May 11. The contract fell back to $103.22, down 26 cents from Tuesday’s closing level.
In London Brent North Sea crude for February rose to $113.97 per barrel, its highest level since November 14. It later stood at $113.70, up $1.57 from Tuesday.
“The market is trying to digest concerns about Iran,” said Jason Schenker of Prestige Economics.
“I don’t think Iran is going to do anything. But… the potential impact would be so large that people have to price it in to the market.”
On Wednesday Tehran renewed its warning to America against keeping a US naval presence in the oil-rich Gulf, adding to its ongoing threat to block Hormuz in reaction to Western sanctions.
“The presence of forces from beyond the (Gulf) region has no result but turbulence. We have said the presence of forces from beyond the region in the Persian Gulf is not needed and is harmful,” Defence Minister Ahmad Vahidi said, according to state television’s website.
The comments echoed a Tuesday warning that Iran would unleash its “full force” if a US carrier is redeployed to the Gulf.
“We don’t have the intention of repeating our warning, and we warn only once,” armed forces chief Brigadier General Ataollah Salehi said.
Meanwhile diplomats said the European Union was on target to impose an embargo on oil imports from Iran, to pressure the country to halt its alleged nuclear weapons program.
France said the embargo could come by the end of January.
“There is an agreement in principle to forge ahead” on the embargo, an EU diplomat told AFP.
The US also said that Treasury Secretary Timothy Geithner would head to China and Japan next week to discuss, among other things, Washington’s desire to pressure Iran via sanctions on its central bank.
Ah, Timmeh, who managed to get the full US Senate to agree that Iran’s Central Bank is a “money-laundering scheme”, while simultaneously hiding the fact that the Fed and all the major US banks are money-laundering schemes. And we can safely assume that oil prices will surge by the end of January, given that they are rising just on the threat of an embargo right now. We may also assume, as I have stated before, that we will be told that the Keystone pipeline is a national must-do because oil prices are soaring with the Iranian sanctions and embargo. Which will nonetheless be blamed on Iran – they made us sanction them.
Two other things are for sure. We are going to invade Syria (I mean, do a “humanitarian intervention”, a la Libya) and start a world war in Iran. But these items won’t make the news for yahoos.
Oh, a third thing is also true: your opinion on these matters is unwelcome and unnecessary, how it affects your life matters not one whit, how many humans die as a result of the pax Americana plan to steal all the earth’s resources and rule the entire planet is completely irrelevant.