For the first time since the Fall of the Shah in 1979, Iranian Warships have been given permission to pass thru the Suez Canal. I think we will see $100.00+ crude sooner than I thought.
Frank, just out of curiosity, what does Iranian vessels passing through the Suez Canal Canal do with the price of oil? Just curious because I don't know.
I wondered that as well Wilma. Look forward to hearing more info Frank.
I think the Israelis and the oil markets would view Iranian ships as a threat to Israel, they would be very close to Israel. If the Iranians are not allowed to come through the Suez, the alternative is that they would have to sail down around the Cape of Good Hope (the far southern end of Africa) and back up thru the Mediterranhean. Another concern is that if their are ships sunk in the Suez, it would really increase the time and cost it takes to get oil cargoes to the US and Europe. The Iranians used to be one of our best sources of Middle Eastern oil, after the Shah was ousted they became our enemy in the Middle East.
There are unconfirmed reports that Egypt has cancelled the agreement to let the Iranian Warships enter the Canal.
Wilma and Roma Jean, Fox News has a good article on the concerns over Iran going thru the Suez.
It will be interesting to see what impact it has on the Brent Crude Market today.
The article is titled "Israel Eyes Iran Warships in Suez With Worry".