21 February 2012

Contact: Stephen M. Apatow
Founder, Director of Research & Development
Humanitarian Resource Institute (UN:NGO:DESA)
Humanitarian University Consortium Graduate Studies
Center for Medicine, Veterinary Medicine & Law
Phone: 203-668-0282
Email: s.m.apatow@humanitarian.net
Internet: www.humanitarian.net

HRI:UNArts: Humanitarian Intervention Initiative
Url: www.unarts.org/H-II

Url: www.H-II.org

OPSEC: Oil and Terrorism -  Prices Transform Oil into a Weapon

The terrorist attack exploits systemic vulnerabilities in world markets. [1]  Through the use of the media, hedge funds and investment banks drive speculative trading in oil/food commodities. [2,3]  The result is spikes in infrastructure critical commodities with catastrophic humanitarian damage on the grassroots level, impacting entire continents. 

Iran warned Britain and the US yesterday that the international community could face a new oil crisis if the United Nations security council imposes sanctions on Tehran over its alleged attempt to acquire a nuclear weapons-making capability. Speaking in Tehran, Ali Larijani, the country's chief nuclear negotiator and head of the supreme national security council, said Iran would be reluctant to cut its oil exports. "We do not want to use the oil weapon. It is them who would impose it upon us." But Mr Larijani added that if the west did decide on sanctions, "we will react in a way that would be painful for them ... Do not force us to do something that will make people shiver in the cold." -- Iran threatens to use 'oil weapon' in nuclear standoff: The UK Guardian, 6 August 2006.

"Banning the tiny quantities of exports to the UK and France involves very little risk for Iran - indeed quite the opposite, it catches the headlines and leads to a higher global oil price, which is something Iran is very keen to encourage," said Caroline Bain, analyst at the Economist Intelligence Unit.... Hedge funds have also boosted their bullish bets on oil to the highest since May, according to regulatory data. Brent crude rallied as high as $121.15 a barrel during the thinly traded day, but later pared gains as traders reckoned that Iran's retaliatory ban on shipments to the UK and France had more political than practical impact. -- Oil rises to 8-month high on Iran, China move: Euronews, 20 February 2012.

Brent crude rose to about $119 a barrel on the ICE Futures Europe exchange in London today, and is up about 12 percent this year, boosted by concern that the Islamic republic may block the strait. About 20 percent of global crude supplies flow through the 34-kilometer-wide (21-mile wide) waterway. -- World faces worst oil risk since 1970s, Deutsche Bank says: Bloomberg, 15 February 2012.

Related: Discussions
  1. HRI: International Disaster Information Network: Economic Emergency Discussions.
  2. H-II Appeal to Nobel Laureates - HRI: Humanitarian University Consortium: Humanitarian Resource Institute, 9 July 2011. Confronting an International Economic/Humanitarian Emergency..
  3. UN Economic Crisis Contingency Discussions: Referral: UN Human Rights Commission, International Criminal Court, June 2011.


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