There was a sharp rally in oil once Israel started to bomb Gaza. It seemed to start because there was the fear that the Saudis and Iran would stop selling oil to the West like they did in 1973. Too bad the Iranians are in such a sorry economic state that they wouldn't dream of stopping oil shipments.
But even in Iran, it's unlikely that Bagherzadeh's call would get much traction. A day after the suggestion, Iran's OPEC governor said the oil producing group was to meet in February, a month ahead of schedule, to take stock of the current market situation.
The conflicting messages highlight the challenge confronting Tehran's hardline government. Like other oil producers in the region, it depends on oil revenue for as much as 90 percent of its foreign income — and is suffering badly as oil prices fall.
It would be financial suicide to cut the sales of something that provides 90% of your foreign income when you have 30% unemployment and are thinking of raising your taxes just to keep your economy afloat.
I think subsidizing proxy wars with Israel using Hezbollah and Hamas is easy with $147 a barrel oil but it is simply impossible with $40 a barrel oil. It also shows me a nice tell as to why Israel chose this particular time to strike Gaza. Iranian missile and weapon resupply money just isn't there anymore. Plus, oil prices will probably not go back to $147 any time this year.
So Hamas has its back up against the wall without hope of resupply or escape. That is the bad part about basing your "destroy Israel strategy" on the fluctuating price of commodities. Now is the time for the Fall of Berlin with Hamas playing the roll of the Nazis.
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