Syria sizzles, Iran gets a new president and oil soars to a nine-month high. Welcome to risk premium that seems to be back in the oil market despite the fact that North Korea is asking for a handout. I mean they are asking for direct talks to the U.S. to lessen tensions. Despite the fact that Iran has elected a kind-of, sort-of semi-moderate Hasan Rowhani, the moderate president-elect of Iran. Despite the fact that Syria really doesn't produce anything significant yet the players that are involved like Russia and Iran's backing of Hezbollah is providing a tension filled back drop to the Group of Eight meeting in Northern Ireland. Yeah we have the Fed as well. Ah, to taper or not to taper — that is the question.
President Obama arrived in Northern Ireland for the G8 that may be dominated by the Syrian war. With Russia and Iran supporting the Syrian strong man Assad with big weapons and the U.S. only committed to provide light arms and pea shooters, the talk between our allies may be how to counter the support that China, Russia and Iran are giving to Assad. The other question is which rebels we support as Al-Qaida is trying to hijack at least some part of the rebel cause.
Poor Mahmoud, not only did he have to give up his presidency, he might be spending some time in jail. The AFP Reports that "Outgoing Iranian President Mahmoud Ahmadinejad was summoned Monday to appear before the criminal court following a complaint lodged by parliamentary speaker Ali Larijani, the government website announced. The summons orders Ahmadinejad to appear before the court on Nov. 26, website Dolat.ir said. It said the case arises from "a complaint lodged by Mr. Ali Larijani" as well as by a parliamentary commission. "The charge is not specified in the notice," the statement said, without elaborating. Relations between government and parliament soured during the final phase of Ahmadinejad's eight-year presidency, with bad blood between the two branches spilling into the open in February over the impeachment of a minister. During the session, squabbling broke out in which Ahmadinejad and Larijani got into verbal fight. Ahmadinejad will be replaced by Hassan Rowhani as president on Aug. 3 following presidential elections last Friday." Short man syndrome can only take you so far I guess.
Gas prices still soaring in the Mid-west as the refining problem continue like the plague. It was a rise in food and gas costs that drove a measure of wholesale prices up big in May.