The Iranians Balk -- What a Surprise!

Yesterday, I related how oil prices were falling because Iran was suddenly playing nice. I believe I said:

"The Iranians will change their minds again. Then, oil prices will go higher."

Well, what happened today? Cue the Bloomberg:

July 11 (Bloomberg) -- Crude oil rose the first day in four after Iran's president said his nation won't back down "one iota'" on its right to conduct atomic research, the day his top negotiator held talks aimed at resolving the nuclear dispute.

The Iranians are playing us for chumps. It wouldn't surprise me to find out they're buying puts on oil before they make a "make-nice" announcement and buying calls before they make a "nasty" announcement.

As long as Iran can pursue its long-term goals by sowing terror and bloodshed in Iraq, THAT's likely to the field of conflict it chooses. Other than that, we can expect it to keep selling oil to the world as it continues to make threats for consumption by Islamic fundamentalist bobble-heads.

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