The price of oil is at a high in international markets after declarations by Israeli Deputy Prime Minister Shaul Mofaz increased concerns of an attack by Israel or the United States against Iran, the fourth largest producer of oil in the world.
At 18:02, the September contract of Brent Crude (Europe’s oil benchmark), traded on the ICE of London, rose in price by $1.08 USD to $125.06 USD, while the September contract of West Texas Intermediate (the oil benchmark in the United States), traded on the NYMEX in New York, rose in price by $1.70 USD to $125.78 USD.
The Israeli Deputy Prime Minister Shaul Mofaz said today that Iran is on its way to a “major breakthrough” in its nuclear arms program, a situation which he considers “unacceptable,” according to Bloomberg News.
Mofaz’s declarations increased speculation of a possible attack by the United States or Israel against Iran. Israel has to “assure itself that we are prepared for any option,” Mofaz said to the news service. Iran has already threatened to block the Strait of Ormuz, through which one fourth of the world’s oil is exported, in the event of an attack on its nuclear facilities.
A specialist from MG Global in New York told Bloomberg that Mofaz “definitely has substance,” and that his comments “will make all the investors anxious.”
Mofaz has been viewed as a possible candidate for Prime Minister of Israel, after Ehud Olmert’s announcement that he will leave his post.
Similar speculation over an attack on Iran contributed to record oil prices which reached $147.27 USD a barrel on this past July 11th.
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