Israeli Warmongering Pushes Oil Prices Higher

The unnecessary international quarrel between the US, Israel and Iran puts salt in the wounds in troubled economic times

by John Glaser, August 13, 2012

Oil prices are climbing to new highs in recent weeks, spurred on by Israel’s incessant threats to attack Iran and the US’s acquiescence on that invented threat.

Last week brought a tense diplomatic kerfuffle when Israeli officials allegedly leaked information about a new, more damning US intelligence estimate on Iran’s nuclear program. US officials rebuked that talk, reiterating their conclusion that Iran is still far off from having any nuclear weapons program.

Finishing off the week of renewed warmongering on Iran, Israeli Prime Minister Benjamin Netanyahu again claimed time was running out to prevent an nuclear weapon in Iran. This kind of talk put markets on alert, fearing a possible attack.

“Intensifying supply jitters spooked the markets following news reports out of Israel indicating a rising possibility of military intervention in Iran,” said a report from JBC Energy in Vienna, Haaretz reports. “While the tone out of Israel has indeed become more aggressive, we still think that Israel is unlikely to take unilateral military action against Iran. However, with U.S. -elections only 12 weeks away, this could of course be a political move by Israel to pressure the current US administration to show its hand.”

The US-led sanctions regime on Iran is also likely contributing to rising oil prices, which are harmful in times of troubled international economies. Together with constant threat inflation from Israel, the unnecessary quarrel is not only paving the way towards war, but it is further harming international markets and ordinary consumers around the world, who would benefit greatly from an easing of trade relations with Iran and an end to threats of war.

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