Report: Iran Will Use Oil as Weapon if Attacked

Iran's Revolutionary Guards chief threatens to hit US, Israel, block Persian Gulf if attacked June 28, 2008, 6:59 PM (GMT+02:00)

IRGC chief Mohammad Ali Jafari

DEBKAfile reports: The Guards commander, Mohammad Ali Jafari issued Tehran's toughest and most explicit threats yet in response to recent reports of Israeli preparations to strike Iran's nuclear installations.

Hinting at an American attack, he said: "If there is a confrontation between us and the enemy from outside the region , definitely the scope will reach the oil issue," said the IRGC commander. After this action (of imposing controls on the Gulf waterway), the oil price will rise very considerably," he said.

"Israelis know if they take military action against Iran… the abilities of the Islamic and Shiite world, especially in the region, will deliver fatal blows.
More...

US and Israeli military chiefs talk in Jerusalem June 28, 2008, 6:40 PM (GMT+02:00)

Lt. Gen. Gabi Ashkenazi, IDF Chief of Staff

Visiting Chairman of the US Joint Chiefs of Staff Adm. Michael Mullen met Israeli Chief of Staff Lt. Gen. Gabi Ashkenazi in informal circumstances in Jerusalem Saturday, June 28. Was this meeting another portent of an impending US-Israeli attack on Iran's nuclear sites? Or was Mullen consigned to hold Israel back from military action while US-Iranian contacts are secretly afloat?

For Oil Contracts, a Question of Motive - Peter Goodman, New York Times

The question hanging over Iraq is whether its natural endowment will be used to help create a sustainable new state, or will instead be managed in ways that reward the cronies and allies of the country whose army toppled Mr. Hussein. Or perhaps both at the same time. That basic question was yanked back to the fore recently when word emerged from Baghdad, in a report in The New York Times, that the Iraqi oil ministry was close to awarding contracts to service its oil fields to some of the largest Western oil companies. While relatively small, these contracts could serve as a foot in the door for much more lucrative licenses to explore widely for Iraqi oil. Some 40 companies from around the world had jockeyed for the contracts, but they were being awarded without competitive bids, the report said.

U.S. Won't Allow Iran to Shut Strait, AFP Reports: The U.S. won't allow Iran to shut the Strait of Hormuz, a transit point for Gulf oil, Agence France- Presse reported, citing Vice Admiral Kevin Cosgriff, commander of the Fifth Fleet.

Oil prices fluctuate after passing $143 a barrel: Oil prices fluctuated Monday, surging past $143 a barrel for the first time and then falling back as a rising dollar prompted some investors to sell. Meanwhile, the price of gas at the pump hit another record high.

OPEC chief sees oil at $150-170 in coming months Crude oil prices could rise to as high as $170 per barrel in the coming months but are unlikely to hit $200 and should ease towards the end of the year, OPEC President Chakib Khelil said in an interview on Thursday.

Bill Moyers /
Michael Winship
It Was Oil, All Along

Ralph Nader
Why Won't Corporations Take On Big Oil?

Parvez Ahmed
Oil Prices, Market Regulation and the Election

Paul Craig Roberts
Why Oil Prices Are So High

Dave Lindorff
The High Cost of a Single War-Like Remark: Oil Prices, Israel, Iran and the U.S.

Bush, Oil – and Moral Bankruptcy - by Ray McGovern
The short answer is arrogant stupidity; the longer answer – what the Chinese used to call "great power chauvinism" – and oil. ...
www.antiwar.com/mcgovern/?articleid=11679 - 47k

Whither the Price of Oil? - by Charles Peña
Apr 23, 2008 ... According to Department of Energy statistics, the price of oil rose from about $20 per barrel to about $30 per barrel over the course of ...
www.antiwar.com/pena/?articleid=12722 - 50k -

Fighting Wars for Oil to Fight Wars - by Mike Davis and Tom Engelhardt
Jun 15, 2007 ... Today, Michael Klare, expert on war and energy, and author of the indispensable book, Blood and Oil, gives us an unprecedented sense of what ...
www.antiwar.com/engelhardt/?articleid=11137 - 56k

Neoconservatives Use Oil to Keep Heat on Mideast - by Emad Mekay
With threats of a Venezuelan oil blockade helping to push petroleum prices higher, neo-conservative politicians and analysts continue to insist the biggest ...
www.antiwar.com/ips/mekay.php?articleid=2111 - 41k

No Blood for… Er… Um… - by Tom Engelhardt
Jun 23, 2008 ... But oil, well… After all, with global demand for energy on the rise, ... No blood for oil? Sure, it was short and snappy and easy enough to ...
www.antiwar.com/engelhardt/?articleid=13030 - 50k

Why Did the US Invade Iraq? - by Jim Lobe
Mar 20, 2008 ... Then there is the question of oil. Was the administration acting on behalf of an oil industry desperate to get its hands on Mesopotamian oil ...
www.antiwar.com/lobe/?articleid=12552 - 46k

Iraq opens bidding on 8 oil and natural gas fields
The Associated Press - 2 hours ago
BAGHDAD (AP) — Iraq opened international bidding for eight enormous oil and gas fields Monday, paving the way for investment in a nation with some of the ...

Gulf countries mulling alternative oil routes
Jerusalem Post, Israel -
By THE MEDIA LINE STAFF Kuwait and Saudi Arabia are reportedly mapping out alternative oil export routes, in the event that Iran would cut off major oil ...
Iran threat to close oil strait Sydney Morning Herald
Iran threatens to shut down Persian Gulf oil lanes if attacked Los Angeles Times
Iran makes oil threats agaist US and Israel Albuquerque News.Net

As price of oil soars, stock markets slump
Christian Science Monitor, MA - Jun 29, 2008
By Ron Scherer | Staff writer of The Christian Science Monitor As the price of oil has soared – oil hit a new record of $142.99 per barrel last Friday ...
Stocks plunge as oil prices hit $140 a barrel, spooking investors Los Angeles Times
Gold Surges as Oil Hits Record and Stocks Plunge Gold Seek

Iraq fails to sign contracts with global oil majors...

Oil prices end down after topping $143 barrel...

The Petroleum-Price Manipulators - Timothy Egan, New York Times
Oil Speculation and Applie Pie - Brian Shelley, RealClearMarkets
Oil Futures & the Folly of Price Controls - Sebastian Mallaby, WashPost

Iraq Opens Oil Fields To Global Bidding - Raghavan and Mufson, Washington Post

Iraq's government invited foreign firms Monday to help boost the production of the country's major oil fields, beginning a global competition for access to the world's third-largest reserves. Iraqi Oil Minister Hussain al-Shahristani said the government would seek to tap Western technology and capital to increase Iraqi oil production by about 60 percent, or approximately 1.5 million barrels a day, swelling Iraqi oil revenue and potentially easing tight petroleum markets where prices have doubled in the past year.

Iraq Opens Oilfields - James Hider, The Times

Iraq opened its main oilfields to exploitation by international companies yesterday in a first step towards reintegrating its massive reserves into a market hitting staggering prices. Hussain al-Shahristani, the Oil Minister, said that he was keen to use international finance and expertise to allow Iraq to realise its full oil potential, an important step to boosting reconstruction and ultimately ending the violence. He said that the Government had drawn up a list of 35 companies and six state-owned oil firms that would be allowed to bid for long-term contracts in six oilfields.

Companies Bid to Boost Oil Production - Smith and Rifai, Los Angeles Times

Iraq's oil minister on Monday announced the start of bidding by foreign companies for contracts to boost the production of eight underperforming oil and gas fields. The contracts, to be executed in about 18 months, would open Iraq's oil fields to foreign companies for the first time since former dictator Saddam Hussein nationalized foreign concessions in the 1970s. Oil Minister Hussein Shahristani said 35 companies had been selected to bid. Among them were seven from the US and four each from China and Japan.

Oiling Iraq's Revival - The Times editorial

If a multinational oil company were asked today to choose between massive new investment in Russia, Nigeria or Iraq, the answer might be surprising. Political pressure is making Russia an unattractive option. Corruption, poor working conditions and the kidnapping of foreign personnel are a substantial hazard in Nigeria. But Iraq, with proven reserves of 115 billion barrels, is to open up six huge oilfields for the first time in 36 years. The country is set to welcome back American, British and French multinationals among 41 foreign companies invited to bid for long-term deals as well as short-term service contracts. Yesterday Iraq's Oil Minister announced that his country's energy industry is to be opened up to foreign participation.

Khurais Oil Field Journal: Saudi Oil Project Brings Skepticism to the Surface...
The New York Times Tue Jul 01 2008 02:45:48 GMT-0400 (Eastern Daylight Time)

Oil hits record on Israel-Iran tensions

Oil prices shoot above $142 after OPEC comments

[b]
GET USED TO IT [/b]

Wall Street tumbles amid oil, financial concerns
Xinhua - China
NEW YORK, July 1 (Xinhua) -- Wall Street dropped sharply in early trading Tuesday, as oil jumped by over three US dollars a barrel and analysts reduced ...


OPEC couldn't replace Iran oil output: OPEC chief
Reuters - USA
MADRID (Reuters) - OPEC will not be able to replace some 4 million barrels per day in lost Iranian output if Tehran carries out its threat to stop oil ...


Iraq: Miles-long gas lines despite oil riches
The Associated Press -
The lines followed Iraq's announcement Monday that it was opening six major oil fields and two natural gas fields to development by foreign firms, ...


Real, not speculative reasons for record oil-IEA
guardian.co.uk - UK
By Barbara Lewis LONDON, July 1 (Reuters) - It is easy to blame speculation for the doubling of oil prices over the past 12 months, but the real reasons are ...


Oil prices fluctuate after passing $143 a barrel
The Associated Press -
NEW YORK (AP) — Oil prices fluctuated Monday, surging past $143 a barrel for the first time and then falling back as a rising dollar prompted some investors ...


Oil Approaches Record Levels Again
RTT News - Williamsville,NY,USA
(RTTNews) - Oil prices rose again on Tuesday and topped the $143 mark again. Light sweet crude moved to $142.55, up $2.55 on the session. ...


Stocks are sharply lower in 1st day of 3rd quarter
The Associated Press -
NEW YORK (AP) — Wall Street is falling sharply at the start of the third quarter, with investors anxious as ever about the damage that soaring oil prices ...


Iraq opens oil work to foreign bids
Chicago Tribune - United States
By Doug Smith and Said Rifai | Chicago Tribune Newspapers BAGHDAD—Iraq's oil minister on Monday announced the start of bidding by foreign companies for ...

More oil will not bring price down-Saudi king: Oil prices would not ease even if production were raised because speculation and taxes are behind the soaring market, Saudi Arabia's King Abdullah was quoted as saying in a Kuwaiti newspaper on Tuesday.

Gulf Arab producers consider feasible single currency schedule

Iraqi Oil Ministry Woos Western Petro-Giants

by Spencer Ackerman, Firedoglake

Behind Skyrocketing Oil Prices
by Robert Weissman / July 1st, 2008

Last month came the news that the Commodity Futures Trading Commission (CFTC) is investigating potential manipulation of the oil trading market.

That’s a good thing, though the CFTC is not exactly the most aggressive regulator around. (Says Judy Dugan of Consumer Watchdog: “On its face, the investigation smacks of the fox investigating a hen shortage in the chicken coop.”)

Market manipulation may be contributing to the recent oil price spike — though even in the worst case, it is only part of the story. The most important factor is supply and demand: supply is having trouble keeping up with unabated …

(Full article …)

End of the petroleum age
The numerous proposals put forward at last week's global oil summit in Saudi Arabia to claw back high oil prices required turning a blind eye to one fundamental point - the world is running out of oil. - Michael Klare

TODAY'S CARTOON

When Oil Men Rule the World

Alternative Reality Source

OPEC daily oil prices set new record of $136.94
Xinhua, China -
The IEA said that, according to research, till 2013 the annual oil demand would rise 1.6 percent, namely a daily demand of 94.14 million barrels, ...
Oil shock looms as prices stay high Vancouver Sun
Energy experts puzzled over oil prices Newsweek
Energy watchdog cites 'oil shock' Houston Chronicle

Big Oil Chutzpah
National Review Online, NY -
Chuck Schumer can keep straight which foreign countries he’s haranguing to pump more oil and which he’s haranguing to stop pumping more oil. ...

Oil majors to lead another Iraq invasion ABC Online

US advisers steered Iraqi oil contracts to Western firms Tehran Times

A Big-Oil Iraqi Invasion Motley Fool

No Gloating for Big Oil
TIME -
In a week when oil prices shot to $143 a barrel, the mood at the World Petroleum Congress in Madrid is surprisingly somber. Perhaps the oil company CEOs and ...

Video: Bosnia poised for oil find - 29 June 2008Video: Bosnia poised for oil find - 29 June 2008 AlJazeeraEnglish

Oil price surges to new high MWC News

Oil execs: Costly crude here to stay CNN International

OPEC daily oil prices set new record of $136.94
Xinhua - China
The IEA said that, according to research, till 2013 the annual oil demand would rise 1.6 percent, namely a daily demand of 94.14 million barrels, ...

What should Big Oil's role in Iraq be?
BBC News - UK
By Richard Thompson There is no question that Baghdad needs the expertise and capital of international oil companies to kick-start its oil industry. ...

Bets on $200 oil increase
Financial Times - London,England,UK
By Javier Blas in London The number of financial bets on crude oil prices hitting $200 a barrel before the end of this year has almost doubled in the last ...


Paulson: no quick fix for oil price
San Jose Mercury News - CA, USA
Paulson warned Thursday that record oil prices are likely to prolong the world economic slowdown. "I think that the oil prices are a strong head wind and at ...


Record oil prices: Iran and the Strait of Hormuz
Times Online - UK
The price of oil soared over $145 today, fuelled by concerns of an attack on Iran by Israel or the US. Investors are worried that continuing tension could ...


July 3 (Bloomberg) -- Crude oil rose to a record above $145 a ...
Bloomberg - USA
Oil has advanced more than 50 percent this year, while equity indexes and the US currency have declined. Economists expect the European Central Bank to ...


Don't blame the buck for high oil price: Paulson
Reuters - USA
By Matt Falloon and David Lawder LONDON (Reuters) - A weaker dollar cannot be blamed for soaring oil prices as policymakers around the world tussle with the ...


Oil Sails Past $145
Forbes - NY,USA
LONDON - The perfect storm for oil prices showed no signs of dissipating Thursday, as supply worries combined with dollar weakness pushed crude to a new ...


Stock market falls follow oil surge
The Press Association -
Europe's major stock markets were nursing falls of around 1% as oil prices hovering near record levels overshadowed trading. London's FTSE 100 Index fell 1% ...


Big Oil's 'secret' out of Iraq's closet
Asia Times Online - Kowloon,Hong Kong
New evidence shows once again both George W Bush administration wars - in Afghanistan and Iraq - above all are about oil and gas. Rumsfeld insisted Iraq had ...


Difficult to replace Iranian oil output, says OPEC: report
AFP -
MADRID (AFP) — The secretary general of the OPEC oil exporting group said that it would difficult to replace the crude output of Iran if the country was ...

Officials Condoned Regional Oil Deal - Steven Mufson, Washington Post

Bush administration officials told Hunt Oil last summer that they did not object to its efforts to reach an oil deal with the Kurdish regional government in northern Iraq, even while the State Department was publicly expressing concern that such contracts could undermine a national Iraqi petroleum law, according to documents obtained by a House committee. Last fall, after the deal was announced, the State Department said that it had tried to dissuade Hunt Oil from signing the contract with Kurdish regional authorities but that the company had proceeded "regardless of our advice."

Committee Questions State Dept. Role - Glanz and Oppel, New York Times

Bush administration officials knew that a Texas oil company with close ties to President Bush was planning to sign an oil deal with the regional Kurdistan government that ran counter to American policy and undercut Iraq’s central government, a Congressional committee has concluded. United States policy is to warn companies that they incur risks in signing contracts until Iraq passes an oil law and to strengthen Iraq’s central government. The Kurdistan deal, by ceding responsibility for writing contracts directly to a regional government, infuriated Iraqi officials. But State Department officials did nothing to discourage the deal and in some cases appeared to welcome it, the documents show.

Big Oil Chutzpah - National Review editorial

We’re surprised that Sen. Chuck Schumer can keep straight which foreign countries he’s haranguing to pump more oil and which he’s haranguing to stop pumping more oil. A few weeks ago the New York senator and aspiring global Petroleum Czar was threatening to block arms sales to Saudi Arabia if it didn’t produce more oil. Now, he’s outraged that the Iraqi government may give modest no-bid service contracts to Western oil companies as a first step toward more fully exploiting the country’s vast oil reserves. Perhaps Sen. Schumer would approve if the Saudis were to agree to pump the Iraq oil?

Attacking Iran? How Does $300 Oil Sound?

Robert Dreyfuss
Wed Jul 2, 8:09 PM ET

The Nation -- Last week the Middle East Policy Council held an interesting and important discussion of what to do about Iran. Unfortunately, I wasn't able to attend it, but the MEPC has helpfully posted the transcript of that event. Led by the astute Chas Freeman, a former American ambassador to Saudi Arabia, the discussion was a very thoughtful effort to analyze the consequences of an American and/or Israeli attack on Iran. If you have the time, read it.

An important aspect of the idea of war with Iran is how it would be viewed by the Arab Gulf states and Iraq. Freeman, who is well connected in the Arab Gulf, made this rather scary point, which I haven't heard anywhere else:

Because logistics require cooperation from countries in the region, they cannot avoid a measure of complicity with a U.S. operation against Iran, and the word in the region is that Iran has already told Qatar, for example, that if there is such an attack, the Qatari regime is toast.

Qatar, of course, is where the U.S. Central Command has its local headquarters.

Jean-Francois Seznec, a professor at the Center for Contemporary Arab Studies at Georgetown University, goes on to suggest a point of possible conflict between Iran and Qatar involving huge gas fields. Qatar and Iran are two of the world's largest powers in natural gas. Says Seznec:

The Iranians are very worried about the enormous development on the Qatar North Dome Field. You know, it's the largest gas field in the world. Qataris are developing it like crazy right now. And the Iranians are upset by that because they own half of that field, and they feel that the Qataris are really stealing their gas at this point. And they've mentioned that, because they have not been able to develop that field for lack of money, mostly, and lack of technology from overseas.

Seznec suggests that oil would go to $300 a barrel if Iran is attacked, and gasoline to $10 a gallon here at home.

Concludes Freeman:

It's fairly obvious that [military] strikes won't solve the problem, will create additional problems, would lead to a wider threat against American and other interests, and would lead to a war with no obvious end. But aside from that, a military strike on Iran is a splendid idea. There is a chance in the next six months that we will find out just how splendid it is. For my part, I hope not.

Copyright © 2008 The Nation
Copyright © 2008 Yahoo! Inc. All rights reserved.