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Iran and the Oil Crisis, Does Mahmoud Have A Plan?
By Dan | July 14, 2008
When Mahmoud Ahmadinejad came to power in September 2005, the price of crude oil was around $55 a barrel. It had been driven up by instability in the mid-east, the Iraq war and the conflict in Afghanistan. The price of oil was promptly driven up to the mid $70s by hurricane Katrina.
This price jump was an immediate boon to the Iranian economy, it meant an increase of $50 million a day. When the price went back down Ahmadinejad and Iran started to rattle their sabers. I don’t it was about oil back then but it still had the same effect, when Ahmadinejad started acting like a nut the price of oil went up.
One has to wonder if Mahmoud had a light bulb moment. Was he sitting around wondering how to fund Uranium enrichment when the light went off?
The easiest way for Iran to fund its Nuclear ambition was to drive up the price of oil. Iran exports around 2.5 million barrels a day. That means when the price goes up $1 Iran makes another $2.5 million per day. Right now Iran can sell its oil and make $280 million a day, $1.96 billion a week. Most of that is profit that the government can turn and use to fund uranium enrichment and terrorist organizations.
It is apparent that the Iranian President knows and is using the link between his threats and the price of oil. The latest example came last week when oil dropped by $9 a barrel and Iran immediately shot of 9 old missiles, claimed they were new and threatened to destroy Israel and 32 US military bases.
What is frightening about this is that the West is funding its most dangerous enemy. Ahmadinejad has a plan, he is using our money to build the tools that he plans to use to destroy us.
It may seem far fetched for Mahmoud to back up his threats, but if we keep paying him around $150 a barrel he will have enough money to buy some very evil allies.
It is time for us to stop debating whether or not we should use our resources. We need to stop funding our enemies and explore for our own energy.
*Update* Bush has removed the excutive order banning offshore drilling.
Topics: Foriegn Policy, Oil Crisis, War on Terror |
One Response to “Iran and the Oil Crisis, Does Mahmoud Have A Plan?”
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July 14th, 2008 at 4:39 pm
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