Iran Profiting From British Hostage Crisis

Iran has been able to see world oil prices increase and profit handsomely from the crisis that they created by seizing 15 British saliors and marines. False rumors of early British or U.S. military action against Iran have resulted in an after hours spike of world oil prices last night, where oil even soared $5 a barrel at one point. Today oil is up over $1 a barrel again, with a cumulative effect over the the last few days. Certainly gas is headed to $3.00 a gallon average and beyond at this point.

Things will only get far worse if actual military action results against Iran. And Iran could choke off the flow of all MidEast oil from the Strait Of Hormuz, driving prices even higher for whenever a flow of oil could be restarted.

Unfortunately, the new UN sanctions have not hurt Iran so far. And their hostage crisis that they created has only made their oil more valuable to make up for any difference that the UN sanctions may create. But it is the customers of MidEast oil who have suffered the most so far, with higher oil prices. The U.S. and Britain are in a difficult position of applying pressure to Iran that does not hurt them more than Iran. Unfortunately, so far the hostage crisis has been a cash cow for Iran. That is not the way things should work.