Buried IAEA Report Could Give Oil a Big Boost

By Irwin Greenstein

The Asia Times reports that we could see a conflict in the Middle East that would send the price of oil skyrocketing.

The article, which carries the headline “Big-Bang Report Blasts Iran,” appears at a time when oil prices dipped below $92 a barrel.

It says that one week ahead of the annual gathering of world leaders at the UN headquarters in New York the International Atomic Energy Agency [IAEA] has issued a new report permeated with “serious concerns” and “outstanding questions” about Iran’s nuclear program.While the IAEA discovered no evidence of military diversion, the report alludes to so-called “alleged studies” that could give impetus to the “Iran Six” multilateral diplomacy involving the U.S, Britain, France, Russia, China and Germany.

According to the Asia Times, these “alleged studies” could lead to stricter sanctions on Iran, or worse, an Israeli or American strike against Iran’s nuclear infrastructure.

Thanks to the global financial crisis the IAEA report got buried. Nevertheless, the implications are truly profound.

The IAEA has revealed a collection of weaponization designs and documents that suggest Iran has tried to develop a nuclear warhead, The IAEA now wants Tehran to separate fact from speculation.

The IAEA and the US see Iran’s refusal to cooperate as a clear sign that the regime refuses to cooperate with the international community.

Since the UN has already imposed three rounds of sanctions against Iran for its ongoing enrichment program, and further US and EU have implemented further sanctions, the next step could involve an all-out bombing of Iran’s nuclear facilities.

Any such action would be devastating global oil markets. But China could be a major casualty as well. It’s Iran’s biggest customer for oil. If China were suddenly cut off from Iranian supply the spot market for oil could reach new highs.

The Bush administration has shown it has an itchy trigger finger - especially when it comes to oil.

Comments

[toomuchgas:]

US public would be eager to go to war to stop weapons of mass destruction. Look how well it worked last time.

2008 Sep 17 05:27 PM

[G. L. Turner:]

And that is just what we need to put the last nail the economy's coffin! We authorize Israel to strike Iran's Nuclear Infra and they sink a tanker in hte S of H. Oil skyrockets... Gee, this palys right into the hands of a "hot-headed" warrior that wants to assume the WH. I remember my comments after the saddleback forum..this ancient warrior will have us in 5 wars within his first year....
Help!!!!
Y

2008 Sep 17 07:36 PM

[BigArm25:]

hardly profound or new, this has been going on for so long and so over hyped that traffic jams push it back in the pages

2008 Sep 18 08:10 AM

[john s. gordon:]

the point of maximum danger is the last day of the emperor george w. administration - january 2009.
> jack

2008 Sep 18 08:27 AM

[Jimbo:]

YogiG and Jack Gordon: I suggest there is a much more likelihood of an "accidental" war with Neville Chamberlain ,AKA OBAMA! in the White House. Be careful what you pray for.

2008 Sep 18 11:40 AM

[NOWHEREMAN:]

Doesn't really matter does it.

Bird Flu arrives in the US and no one notices. Its all a matter of perspective.

Meanwhile the Nuc. Reactor of the Iranians is due to be activated as early as Dec. of 08 but no one seems to care either.

Give us a quiet news period and the Media will try to find something else to try to scare us with in their ratings Race.

The Russian Company building the reactor anticipates activation during the 12 of 08 to 2 of 09 time frame.

2008 Sep 19 12:20 AM

[whidbey:]

The danger is war - with Israel leading the attack. The IAEA is very truthful about events, but their report is hardly news since Iran's goals have been known for 2-3 years and the EU is known as a pussy cat with a large mouth. The unknown is Russia, a sometime backer of Iran. Russia must have mixed emotions, Iran out of the oil market would greatly simplify Russia's ambitions for sales in Europe, and China. So maybe we are on the verge of war and higher oil prices which will finish the economy off, or possibly Russia will see an advantage in making Iran come to a nonnuclear weapon stopping point. To Russia money matters - greatly.

2008 Sep 19 12:30 PM