Oct. 23 (Bloomberg) — Crude oil rose for the first day in three on tensions in the oil-rich Middle East, as Iran signaled a tougher stance in nuclear program talks and Turkey considered military action in Iraq.
Turkish Prime Minister Recep Tayyip Erdogan said his country’s forces may attack Kurdish fighters in northern Iraq in “days.” Iran said it should set conditions for discussions with international agencies over its pursuit of nuclear technology.
“Although we believe in negotiations, we do not bargain over our rights,” Iranian president Mahmoud Ahmadinejad said during a visit to Armenia, according to the Islamic Republic News Agency. Prime Minister Erdogan said today Turkey could use its military “at any time” to attack militants based in Iraq.
Crude oil for December delivery rose as much as 77 cents or 0.9 percent to $86.79 a barrel on the New York Mercantile Exchange. The contract traded at $86.33 at 1:40 p.m. in London.
Full article here. Analysts are beginning to see a Turkish invasion as an inevitability:
The Turkish army, NATO’s second- largest, is poised for a possible attack on northern Iraq that may begin with air strikes and strafing runs by helicopter gunships aimed at smashing the mountain hideouts used by Kurdish guerrillas.
Turkey might follow the strikes with tanks and armored personnel carriers that would punch across the border as helicopters ferry commandos to a string of guerrilla bases some 20 kilometers (12 miles) from the frontier, military analysts say. The Turks would face rebels who have had years to reinforce their bases and are well-trained in mountain warfare.
“It would be a major incursion,” said Michael Radu, co- chairman of the Center on Terrorism at the Foreign Policy Research Institute in Philadelphia. The Turks “cannot pull back now and say, ‘We have made all these noises and we increased oil prices and OK, we’ll send 200 people in.’ That is not going to happen.”
Full article here.