Jul 10, 2008

Iran Tensions Reverse Oil Price Fall

As we warned a day or so ago - Iran, and possible military confrontation with Iran, will keep oil prices up. After two great days of falls, concern over Iran has seen prices move upward.

LONDON (Reuters) - Oil prices rose more than $1.50 a barrel on Wednesday after Iran tested long- and medium-range missiles, but crude remained far from its recent record highs, boosting global equities.
Iran's test-firing of missiles, including one which it has previously said could reach Israel and U.S. bases in the region according to state media, weighed on the dollar, raising the heat in a region already beset by tension over Tehran's nuclear programme.
The rise in oil followed a $5 fall on Tuesday that lifted investor spirits and helped trigger a rally on Wall Street overnight.
U.S. light crude was up about $1.50 on the day, but its price of just over $137.50 a barrel was a far cry from last Thursday's record high of $145.85.