World Oil Prices Could Triple If Bush Admin. Fails To Solve Iran Conflict

[NVMojo]

June 20, 2006

World oil prices could double or triple over the current painful $70-per-barrel level if diplomacy failed and military conflict broke out over Iran's nuclear ambitions, Saudi Ambassador Prince Turki al-Faisal warned this morning.

"We don't know" what will happen if the United States chooses a military option in Iran, al-Faisal said, but "if there is military conflict, if bombs are dropped, ships are blown up, oil facilities on our side of the gulf are targeted . . . just the idea of somebody firing a missile at an installation somewhere would shoot up the price of oil astronomically." In such a scenario, he said, Saudi Arabia "hopefully would defend our oil installations as best as we can and seek an immediate resolution," but the risks would be grave. "Not just our installations, but the whole gulf would become an inferno of exploding fuel tanks and shut-up facilities," al-Faisal said.

more...

http://www.huffingtonpost.com/2006/06/20/world-oil-prices-could-tr_n_23415.html

[screembloodymurder]

1. Will the price go up or will

the dollar fall to one third it's current value?

[Warpy]

2. Probably a combination of both

meaning the price will appear to triple as the dollar falls and the spot price rises.

A falling dollar is also going to cause severe inflation at home as everything we use but fresh foodstuffs is generally made elsewhere. We are going to be bitten quite severely by the corporate greed that offshored our industry while beggaring the workers here at home. Wages have never kept pace with inflation and are unlikely to now.

Plus, war always causes inflation, even if a country is still on the gold standard. It's just one of the very predictable effects of war.

The world is voting "no confidence" in the dollar because of this administration's reckless and ruinous tax cuts to the wealthy and corporate.

The process will continue whether or not the situation with Iran is resolved to the UN's satisfaction.