Biggest threat to oil prices as US rearms Israel

The Bush administration is reportedly speeding up the shipment of previously ordered ‘state off the art’ laser and satellite guided missiles to Israel, in a move that threatens to anger both hostile and friendly Arabic nations alike. In the light of the continued bombardment of the Lebanon by Israeli forces the resentment from Arabic nations is growing.

According to the New York Times – citing US officials who spoke under conditions of anonymity – the weapons are part of a multi-million dollar package agreed before the war on Lebanon – though US government officials have approved ‘fast tracking’ the missiles for use in the Lebanon.

It is thought that the munitions will need to be air freighted to Israel, as seaborne shipping might be too dangerous.

As we mentioned in a previous article these are likely to part of the multi-million dollar military aid package to Israel from the USA taxpayers.

The last time the USA fast tracked missiles on a massive scale to Israel was during the 1973 Arab-Israeli war – it was at that point that Opec suspended large scale shipment of Oil and precipitated the oil crisis.

As the war continues, and the loss of civilian life and the humanitarian crisis increases in the Lebanon, the USA is beginning to look particularly isolated in its stance on its uncritical support for Israel and supply of arms to fuel the bombardment.
   
Over the weekend, newspaper editorials across Europe have severely criticized the USA for its stance in not supporting an immediate ceasefire. As the Arab nations feel growing resentment towards the hostilities and the fact that the USA is now seen as directly supplying the bombs killing their neighbours, the likelihood of some form of action is increasing.

We suspect that $100 oil is around the corner. That won’t please anyone, except Mr Bush’s oil baron friends.