Sep 27, 2007

Bad News for Iran

From Transatlantic Politics:

"In Kasparov's view, the main goal of Russian foreign policy is to raise the price of oil, no matter what - that's why the tensions in the Middle East are so important to Putin."

If Chess master Kasparov is right then Russia should be hoping for a war between the U.S. and Iran. In such a war Iran is likely to close the Strait of Hormuz, through which much of the Middle East's oil flows. The strait is fairly shallow and so if Iran sinks some ships in the strait, the shipping way will be closed for some time. A U.S. / Iran war, therefore, will greatly raise the price of oil and so increase the revenue going to Putin.