Tuesday, February 21, 2012
Iran this week
If you're looking at the news and wondering what's going on with Iran, well . . . you're not alone.
People across the world this week will notice a rise in fuel prices. Even in places like Sri Lanka.
European crude is around $120 and rising, while NYMEX has crossed the $100 threshold. Even though Saudi Arabia has promised to "off set" any supply cut from global demand, Iran's choice to unilaterally cut off oil to some European countries (over their threat of sanctions) has internationally shot up prices. Though many in France and Britain will tell you it was less than 1% of their supply anyway.
To further understand what is going on, I recommend checking out this program by Al Jazeera, then this one on NPR, and finally this one by CNN.
They all do a good job with the facts and showing all the little antagonistic steps each country takes to try and one up one another. Eventually, so everyone thinks, someone will have had enough, and either a war will break out, or there will be some kind of deal that lifts sanctions for flying in uranium and installing inspectors at Iran's nuclear plants. That is what a deal would look like, no?
In the meantime, let's watch how much oil spikes this week. Just to see how much of an effect Iran's strategy to unilaterally stop shipments to Europe has on their fragile economy and global markets. If it really works, for the Iranians that is, they could push Europe and the US into a double dip rescission and make them feel the pain they feel on the streets of "high inflation Tehran."
The game continues.