The price of crude oil spiked today amid as-yet-unconfirmed rumors that 11 members of the Iranian military “invaded” Iraq and seized an Iraqi oil well near the border.
Deputy Foreign Minister Mohammed Haj Mahmoud says the troops seize oil well number four in the al-Fakkah area, saying that the government intends to summon the Iranian ambassador over what he called a ploy to “prevent Iraqis from investing in oil fields in border areas.”
Iran’s national oil company denied that any such incident had taken place, adding that there were joint agreements signed for the development of the Eastern Maysan field and that no military had been deployed to the area.
According to a US spokesman, the well in question is about 500 meters from Iran’s border fort and 1 km from Iraq’s. Since the well is abandoned pending the finalization of a cooperation deal between the Iraqi and Iranian governments, it would appear the action, whatever it is, should have no affect on oil output in the region.