Taking the subject mainstream and talking scary instead of talking funny, host of the Comedy Channel's Daily Show Jon Stewart interviewed John Bolton former Ambassador to the U.N. on Wednesday, July 29. Bolton was given the opportunity to expound upon why he advocates an Israeli assault on Iran's nuclear facilities. The fact that the subject is openly discussed on the nations comedy channel hints at the precarious state of affairs we all currently live.
Stewarts lead question regarding the matter was a humble, "really"? The "really" being that Israel should bomb Iran's nuclear facilities before they acquire a nuclear weapon. Iran has repeatedly warned that such action would threaten the world's petroleum markets, as it would move to close the strategic Straits of Hormuz.
Mr. Bolton recently stated in a WSJ article titled What If Israel Strikes Iran, "Prudent hedging by oil traders and consuming countries would minimize any price spike." If such course of action does unfold we could look for the price of crude oil to challenge it's previous all time high of $147 in short order. A break of that number would represent a truly apocalyptic scenario.
The clock is ticking as President Obama has set a September deadline for Iran to respond to his outstretched hand of diplomacy or face recourse. Is this another hollow threat as with so many other deadlines set during the Bush era or will we see stinging punitive measures applied to Iran this time around? According to a Reuters release on August 3rd, Israel and the U.S. are mulling over the possibility of enacting restrictions on Iranian imports of refined petroleum products if Iran does not engage in diplomacy come mid September. Any attempt to sanction or embargo refined petroleum products into Iran could quickly escalate into a conflict that disrupts global oil supplies. From a technical perspective a break of the $75 resistance level triggers a buy signal. Where the price goes from there will be determined by events outside of Washington's control.
Call me to discuss trading strategies that can be implemented on a break of $75 resistance or if you are interested in learning more on the unfolding drama between Israel and Iran and how they hold the potential to affect our Western way of life.
