Does Iran benefit when Oil is expensive?

Does Iran benefit when Oil is expensive?

Of course it does. And Oil trend is becoming more beneficial to Iran.

What is wrong with Iran and its Nuclear Issue, and how is affecting the market?

Politically speaking, it is a worrying issue, but in reality it is not.

Worrying issues: If there is a decision about having a worldwide war with Iran, we would encounter un-thinkable consequences on crude oil, US, and especially Japan since the latter highly relies on oil. It won’t be an Iraq army-war as much as a well burning-oil effect on all sort of industries. Result: Rapid crashing businesses and number one would be Technology Sector before transportation sector.

Reality: US is not planning to plunge itself with expensive oil damages that might be a good cause of Iran war, at least yet. If the US is ready to bear oil expensive consequences, its margin may be endurable for $100/barrel, which is a near term target anyway.

The consequence of Iran was tested murmuringly this week [Iran fired at a US ship (rumor)] where oil reached $68/barrel, and then the move gave up its test where oil backed to $63 (Thursday). Any serious tension with Iran, expect oil to reach $200/barrel within a rapid move of countable –finger days. Something I consider a ‘suicide’ strategic plan for the US, and no ‘survival’ method to catch that trend in a bearish market.


Our long Term trades has translated the tension ahead of time, and correction (short term) is expected after the weekend.

To finalize, higher oil prices is negative for the dollar (because it is harmful to the US economy) and eurusd target becomes lower than 13700. This is valid as long as oil prices rise much further; it seems such move is foreseeable future raise.

Euro wave between 13200 and 13700 is going to be misconstrued and lot of media trend up buzz will be stubborn towards 160, and since April is the month where long term traders position themselves for summer time, a nice trap is on the built. Remind me when September shows up! Long term EURUSD target is 110 and not 160, and that view will be updated by mid Jun. Confirmation of 110 is when euro starts screening below 13100.

Question for Analysis:
why the US would need the oil price to be expensive?

Asia competitive market has the answer.

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