Today's dramatic $6-a-barrel spike in oil has been blamed on a couple of factors - a forecast by Morgan Stanley (NYSE:MS) claiming oil would hit $150 a barrel by July and a weakening dollar off news unemployment increased half a percent for the month of May.
But CNBC contributor John Kilduff, who is also the vice president of risk management for MF Global (NYSE:MF), told viewers on the June 6 "Squawk on the Street" geopolitical factors, specifically remarks from an Israeli official about attacking a nuclear facility in Iran, is behind the spike.
"[W]hat's really lit up this market big time here is, which hasn't been really mentioned. I haven't heard too much and I'm surprised at, is deputy minister in Israel said this morning that an attack on Iran's nuclear facilities is quote, ‘unavoidable,'" said Kilduff on CNBC's "Squawk on the Street."
"This is one of Ehud Olmert's deputies - leading deputies, and Israel having a track record in this area, the market has jumped all over this comment," he said.
Kilduff was referring to comments by Israeli Transport Minister Shaul Mofaz published in the Israeli newspaper, Yedioth Ahronoth.
"If Iran continues with its programme for developing nuclear weapons, we will attack it. The sanctions are ineffective," Mofaz told the Israeli newspaper, according to a June 6 Reuters article. "Attacking Iran, in order to stop its nuclear plans, will be unavoidable."
In May, Kilduff predicted the price of oil would top out at $138 before retreating.




















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The blame should fall on the
June 6, 2008 - 13:42 ET by BruzillaThe blame should fall on the speculators who started snapping up more oil futures in the hopes that a war will break out.
Take Action
June 6, 2008 - 13:59 ET by acumenTaking military action to prevent Iran from gaining nuke capability is inevitable thanks in large part to an inept UN and a belligerent Iranian government intent on "wiping Israel off the face of the earth".
The only way to prevent gas prices from rising in the US based on the above inevitability is to start drilling here at home.
The only group preventing more drilling in the US are the Democrats. Why do we allow the Democrats to continue to cause our gas prices to increase?
From CNS News - Lawmakers Split on Drilling for Vast Amounts of Oil in USA
Why do we allow the
June 6, 2008 - 14:58 ET by ThisnThatWhy do we allow the Democrats to continue to cause our gas prices to increase?
Because the Dims can safely blame it on Bush, knowing the MSM will back their claim 100%. The MSM knows no shame; the MSM has no morals. They only have an agenda. And a stupid, compliant, non-thinking public.
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If you can read this, thank a teacher. If it is in English, thank a Soldier. - My barber
acumen...I agree with all
June 6, 2008 - 15:33 ET by bigtimeracumen...I agree with all of your post...with the exception of the dems being all at fault...we have RINOs that have halted drilling here, led by McCain.
I have been furious since then....along with other issues...but this one was the most infuriating for me.
Drill Often...Drill Everywhere!
"Never murder your opponent when he is committing suicide." ~ W. Wilson
Or was it that "Israel should be wiped off the map?"
June 6, 2008 - 14:11 ET by Gary HallWell naturally, it couldn't be caused by satements like these, from Iran's president, Ahmadinejad:
BIG LIES
June 6, 2008 - 14:55 ET by mattmBIG LIES