From The L.A. Times:Maybe he was just playing politics, painting himself as a hawk to take on his battered rival. Maybe he was revving up the world for war against the country of his birth.
In any case, an Israeli cabinet minister's remark calling a war against Iran "unavoidable" has had global repercussions, sending oil prices to record highs and drawing condemnation today at the United Nations and by the chief of the International Atomic Energy Agency.
Read more ....
My Comment: The remarks that were made by an Israeli Cabinet Officer was enough to send prices for oil to record levels ... imagine if Israel actually bombed Iranian nuclear sites. Such an action will result in $200/barrel.
But the question needs to be asked .... in the event of $200 per barrel will this price last, and what are the security/war/instability issues that will arise. In the immediate term, Iranian production will be impacted, and their surrogates will be active throughout the Middle East and abroad. Some countries may even openly sympathize and restrict oil exports, Venezuela is one country that comes to mind. But a few months later, oil exports will resume to the same level as before. While many countries are dependent on oil imports, the oil exporters are dependent on their oil revenues to fund their governments. Interruptions hurt everyone in the long run.
But it is in the short term that pain will be felt by everyone, and the danger of escalation presents itself. In particular .... for the world's poor and the fast developing Asian giants. Countries such as India and China are now developing a foreign policy that revolves around obtaining oil and resource products at any cost. Any price instability or product limitation will make these governments openly antagonistic to anyone that is responsible for disrupting their supply. What threats they will use when so many millions of their citizens are suffering ... your guess is as good as mine.
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