Thursday, July 10, 2008

A decent explanation of why oil price rose today

Apparently the rise in the oil price as well as the fall of the USD is to be explained through the so called long range missiles tests shown on Iranian national television.

It`s geo - strategical location close to the Hormuz strait enables Iran to impact oil prices. It is believed that 40% of the world`s crude oil passes through that area. Having control over it or posing threat to it would lead to impact on the oil prices and currencies attached to it (almost all, mostly USD).

The full story can be previewed here.

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