CNBC's Terranova: Missile Defense Decision Will Send Oil Higher

Back during 2008, Congressional leaders were eager to call oil executives to testify before them because of the high price of gasoline, which was tied to the higher prices of oil.

On Sept. 17, President Barack Obama surprised a lot of people and announced he was pulling the mat out from under two Eastern European allies - Poland and the Czech Republic - when he decided not to go forward with a missile defense shield proposed during the previous Bush administration.

"President Obama reeling back the Bush administration's plans for a missile defense shield in Eastern Europe, instead opting for a new system he says is better equipped to fend off an Iranian threat," "Fast Money" host Melissa Lee said on her Sept. 17 show.

That decision combined with a decision for the United States to meet with Iran, as part of a summit of the United Nations Security Council plus Germany about their nuclear program on Oct. 1 could have an impact on the price of crude oil.

"Went long on a little bit of crude oil today when I read this story," "Fast Money" panelist Joe Terranova said. "The reason being, Oct. 1 the Iranians sit down with six other nations including the United States to discuss the Iranian situation."

According to Terranova, the decision to pull the missile defense shield could put an already tenuous situation between Iran and Israel even further on edge and, if history is any indication, that will send the price of crude oil higher in the long-run.

"I've got to think the Israelis are not too happy about that development, nor are they too happy today about the development with the Obama administration," Terranova said. "Good reason to be long oil - my opinion."

The price of oil has settled around $72 a barrel after rising from six-year lows earlier this year. Some experts are crediting a stronger dollar for the ease in prices, which have proven volatile if uncertainty in the Middle East arises.