Something to consider if you need to secure diesel fuel...
Jun 17, 2013
Hassan Rowhani surprise victory this weekend as the new Iranian President has the trade wondering what exactly this means moving forward. Rowhani, who was never considered a frontrunner ended up winning by a landslide. In fact just a week ago, Rowhani was seen as overshadowed by candidates with far deeper ties to the current power structure. Word is during his campaigns he talked about establishing a government in which he would save the country’s economy, end the current radicalism, and hire back moderate forces to help reconcile with the world and ease international sanctions over the nuclear program. Keep in mind "international sanctions" have pushed Iran's inflation to more than 30%, and caused their national currency, the rial, to drop by more than 50%. While this appears to be a step in the right direction, it does not translate directly into power in Iran's Islamic system. The ruling clerics and their protectors, the Revolutionary Guard, still maintain control over all key decisions such as nuclear efforts, the military and foreign affairs.
There is also some concern in the trade as news circulates that the US has officially authorized weapons aid to Syria Rebels. The full scope of the assistance authorized by the White House is still unclear. But the administration could give the rebels a range of weapons, including small arms, assault rifles, shoulder-fired rocket-propelled grenades and other anti-tank missiles. Russia has stepped forward and criticized the US decision to arm Syrian opposition fighters. And in turn say they plan on following through with sale and delivery of $900 million in S-300 air-defense missiles that had been ordered by the Syrian government. With two heavy weights clearly lining up in opposite corners, the crude oil market has managed to push itself to new 9-month highs.
UPDATE: Iran recently annouced that they will be sending 4,000 Revolutionary troops to Syria to fight alongside Syrian President Bashar Assad's forces.
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