Yes, the forecasters and analysts at the IMF, not exactly the home of peaceniks, is predicting as much as a 30% rise in the price of crude oil due to the sanctions on Iran and the threat of war that such an act implies. Don't forget that it was the same sort of sanctions on Japan in 1941 that put Japan's leaders into the frame of mind that war with America was inevitable. This of course was followed by the attacks on Pearl Harbor, the Phillipines and other American colonial possessions in the Pacific.
The International Monetary Fund warned on Wednesday that global crude prices could rise as much as 30 percent if Iran halts oil exports as a result of U.S. and European Union sanctions.
If Iran halts exports to countries without offsets from other sources it would likely trigger an "initial" oil price jump of 20 to 30 percent, or about $20 to $30 a barrel, the IMF said in its first public comment on a possible Iranian oil supply disruption.
Now, anyone who's watched an oil company in operation knows what is going to happen to gasoline prices. If crude oil jumps by 30%, you can expect gasoline prices to increase by at least that much and if not more. Then, they'll stay high after crude oil returns to normal, and even then won't ever drop back down to the pre-jump levels. Once the oil companies get people used to paying $3 a gallon, the price doesn't ever fall below that again.
So, expect at least a 30% rise in gasoline prices, which where I live will push 'regular' up to around $4 and the more premium levels up even higher. And, that's if the oil companies only raise the price by the same percentage as the price of crude oil on the spot market changes. Of course, the great humanitarians at the world's oil companies wouldn't dream of using the crisis as an excuse to raise prices even higher, would they?
This is the direct result of Obama's policies towards Iran. Obama's government has been playing up the fictional Iranian nuclear program and pushing these sanctions upon the rest of the world. This despite the predictable outcomes of such a confrontation and embargo jacking the price of oil higher.
Get ready for the economy to get even rougher. The price of gas is going to rise. Which means that not only will it cost more for you to get around, but everything you buy will have increased prices and more 'gasoline fees' that won't ever go away once put into place. Meanwhile, Obama's Wall Street banker-buddies are crashing the European economy in order to inact harse 'austerity measures' there.
This double whammy of a second banking crisis and skyrocketing energy costs is going to put an end to Obama's fictional, jobless, moneyless recovery and send things tumbling back into a downward spiral.
And, when this happens, remember that its entirely because Obama and his Democratic party loyalists put you and the economy at a lower priority than helping their banking buddies strangle Europe and than starting yet another war, this time with Iran.
Your life sucks and the economy is hard because Obama, the Democrats and most of the other politicians in Washington simply don't give a damn. Obama is capable of yakking away about economic recovery before Congress while at the same time taking actions that will crash the economy. If you learn the lesson that actions speak louder than words, then you'll better understand what's going on