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Saturday, June 21, 2008

Global Conflicts cause Rising Oil Prices that Trigger Inflation Hike

Global conflicts ...some new fronts might open up : such is the worry in the market.

A few such are : A massive Israeli military exercise and some remarks that point to a possibility of a confrontation with Iran. This is speculation...but if it happens it will have massive impact on oil prices.....MASSIVE. reason is 40% of the world's oil passes through the narrow Gulf of Hormuz off Iran. This is an extremely strategic area.

A conflict in Iran might mean shutdown of oil from Iran as well as Iraq as all the oil has to pass through this.

Recent attacks in oil-rich Nigeria......these are hit and run operations from speedboats.

The ongoing Iraq & Mid East Crisis. Pipelines are easy targets and there is no cheaper alternative to it.

Oil Prices are hence on the boil.

Leading to massive global inflation.

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