More problems on the horizon

First cheap money. Then a weak dollar. Now this.

'If Iran continues with its programme for developing nuclear weapons, we will attack it. The sanctions are ineffective,' Transport Minister Shaul Mofaz told the Yedioth Ahronoth newspaper.

'Attacking Iran, in order to stop its nuclear plans, will be unavoidable,' said the former army chief who has also been defence minister.

Any attack on Iran would likely see the Islamic regime retaliate by witholding crude exports and targeting key oil transport routes in the Straits of Hormuz -- where some 30 percent of global crude supplies pass through, analysts said.

'The reports of the Israeli comments have seen a huge spike in oil prices,' said Bank of Ireland analyst Paul Harris, though he argued any Israeli attack remained a remote possibility.(Source: Thomson Financial, London)

Not surprisingly crude soared almost $12 in two days. Bad news for consumers. Good news for investors holding energy stocks and energy trusts.

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George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977