Time To Go Long Oil Again As Iran Ramps Up Uranium Enrichment

The recent developments in the Middle East and North Africa have been the focus of attention for policymakers as the implications of escalating unrest are significantly problematic for the global economy. The recent upward pressure on oil prices has been a reflection of market expectations rather than actual shortages in supply but there are fears that the recent surge in oil prices could persist if the political tensions in the region do not improve.

With the market still hopeful of some deus ex resolution to the Fiscal Cliff will take place in the last few trading sessions of the year (one where the market itself will not have to be the catalyst for such a resolution, because once the selling starts in earnest, who knows if and when it stops, hence the loading up on prodigious amounts of puts), here is Iran out of left field, adding yet another known unknown to the inequality, announcing that it will begin six days of naval drills in the Straits of Hormuz on Friday.

President Obama has stepped up the rhetoric against Iran with an offer to "negotiate". His offer is no offer at all, it is a demand to surrender. There will be nothing left to "negotiate" if Iran accepts the offer. This is what Obama demands before "negotiation" begins.

By Dividend Kings:Rising tensions in the Middle East are likely to play a huge role in energy stocks this year as the threat of an oil embargo on Iran or a conflict over the Strait of Hormuz could send energy costs through the roof. Your portfolio should contain a few decent energy stocks in order to take advantage of potential gains in the sector this year. Start looking out for explosive movement in the energy sector as the West continues to move its energy interests away from Iran.

By Hawkinvest:Iran has been adding volatility to the price of oil, with threats to close down the Strait of Hormuz. Comments from one of Iran's highest military leaders were detailed in a recent CNBC article which stated: "Closing the Strait of Hormuz for Iran's armed forces is really easy... or as Iranians say, it will be easier than drinking a glass of water," Habibollah Sayyari told Iran's English language Press TV.

Another day, another muppet bites the dust. From Goldman: Brent pressured as European and Chinese concerns resurface   Despite recent price action, current fundamental data looks tight  

The United States has nothing left to pressure Tehran over its nuclear programme except for war, and if it chooses conflict Iran could close a key energy chokepoint, its envoy to Baghdad told AFP on Thursday.