Oil Rebounds On Iran Missile Tests

by Darren

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Oil price reversed a two day decline as “supply worries” re-appeared on the scene. What prompted those worries? Iranian missile tests that seem to indicate Iran has enough military clout to attack one of their neighbors. Accompanying the missiles was the required saber rattling rhetorhic the Islamic Republic is known for.

“We are telling those enemies who intend to distract Iran from its holy path through psychological war or real threats that we are always ready to defend the Islamic country,” said Hossein Salami, commander of the Revolutionary Guards naval forces.

Oil prices are still down from their high, which was close to $146/barrel.

The Iranian missile threats prompted divergent views from the two Presidential Candidates in the U.S. Obama said he wanted to use economic sanctions to make Iran change their mind. McCain said it’s time for a defensive missile shield that would render the Iranian threat impotent.

One thing that’s obvious: when threats from Iran are made public, oil prices go up. It almost makes one wonder if that isn’t the goal of much of the gamesmanship we see, since Iran stands to directly benefit every time oil prices surge.

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