Monday, June 15, 2009

Iran and Oil

Iran is a strategic pivot point for the oil market. Iran is a large crude oil exporter, it is close to large oil exporting nations and it borders a major oil transit waterway (Strait of Hormuz).

The election result in Iran a few days ago were surprising to some outside of Iran - they shouldn't have been - at least according to Stratfor, a Texas-based private intelligence agency. Stratfor has a summary of how the election resulted in Western Misconceptions Meeting Iranian Reality. Their conclusion:
"For the moment, the election appears to have frozen the status quo in place. Neither the United States nor Iran seem prepared to move significantly, and there are no third parties that want to get involved in the issue beyond the occasional European diplomatic mission or Russian threat to sell something to Iran.(Stratfor)
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