I’ve heard oil analysts comment they think $2-5 per barrel of oil is attributable to the current tensions between the U.S. and Iran. My thought is they won’t block shipping through the Strait of Hormuz by either a blockade, attacks or sinking a ship. They need the money far too badly as Ahmadinejad got into office by throwing skads of cash to small villages during his campaign and by keeping the price of gasoline at , I believe, $0.12, which yielded burgeoning demand (10+ %) per annum which has turned his country into a huge net importer of gasoline because of a lack of infrastructure. The Iranians are as notorious as Putin for changing deal terms and don’t allow ownership in projects within their borders (kind of like pre-nationalizing the finds) so Big Oil is reluctant to invest heavily in infrastructure or exploration in country.
So by popular request, I zman, open this Iran thread to open discussion, this 26th day of February 2007. May it serve to keep rants off the main post and I would ask that you keep it clean fellas (I have readers over there).