Friday, July 6, 2012

Tensions Rise In The Gulf But Desire For War Is Not There

An oil tanker loads gas in Assaluyeh seaport at the Persian Gulf, 870 miles south of Tehran in this May 27, 2006 file photo. Iran will see its July oil exports more than halved from regular levels seen last year because tough new Western sanctions are stifling flows and costing Tehran more than $3 billion in lost revenue per month. Morteza Nikoubazl/Reuters/File

Gulf Sabers Rattle As Iran Sanctions Bite -- New York Times/Reuters

LONDON (Reuters) - Iran and the United States might be talking up their readiness for war in the Gulf but beneath the rhetoric, all sides appear keen to avoid conflict and prevent accidental escalation - at least for now.

This week, a string of hawkish Iranian statements - including a renewed threat to close the Strait of Hormuz and destroy U.S. bases "within minutes" of an attack - helped push benchmark Brent crude oil prices above $100 for the first time since June.

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My Comment: Sanctions are hurting Iran financially .... but with $150 billion in reserves .... the Iranian government has more than enough to pay the bills for the next few years.

As to the rise of tensions .... until the US puts more military muscle in the region I am skeptical of any talk and/or claims that war is around the corner. To put it bluntly .... such a conflict would be a war of choice that the White House (and most of America) has no desire to proceed at this time or .... for that matter .... the foreseeable future. Ditto for Iran.

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