“Muddy Waters” for Oil Prices

 Reuters today is speculating on an Iranian plot “Muddy Waters” to purposely cause an oil spill in the Persian gulf.

According to the Der Spiegel report quoted in Reuters this would be done by blocking oil traffic in the Strait of Hormuz by steering a tanker onto rocks and causing a massive oil spill. The subsequent clean up effort would require Iran’s co-operation and would result in a temporary lifting of the embargo on the country. The speculation comes as the EU considers tougher sanctions on Iran, even as Iran offers to suspend domestic production of medium-enriched uranium.

It would be massive environmental tragedy if such an oil spill were to occur in the Persian gulf and both Iranians, gulf states and the millions of tourists that visit the region would be in outrage.

With Syrian civil unrest and Iranian “plots” expect oil prices to continue to remain high in the immediate and short-term.

Read the full article on Reuters