If you think gasoline is expensive now, imagine the price when Iran and Israel start lobbing nukes at each other.
Am I having a nightmare? No, I’m fully awake. That snoozing you hear is an energy market blissfully unaware of potential major war in the Middle East. The shooting could begin as soon as this year.
The world’s financial markets are completely discounting the very real possibility of an Israeli-Iranian war. Years of anger, threats and caustic rhetoric have put the so-called “experts” to sleep. Their blindness is incredibly dangerous for everyone.
Just look what’s happening RIGHT NOW. Israeli jets are already flying into Syria and Lebanon, disabling air-defense systems. Why?
To me, it’s obvious. Israel is clearing the path for a first strike against Iran’s nuclear missile launchers.
Israel’s Benjamin Netanyahu is not kidding. He will not allow Iran to have nuclear weapons. If he can’t stop them through negotiations, he will do whatever it takes.
Most people discount the possibility of an Israeli “first strike” for logistical reasons. They believe Israel would need U.S. cooperation to strike deep inside Iran. We could certainly make it easier for them. The U.S. could provide aerial refueling and other support while Israel drops the bombs.
With his nation’s very survival at stake, Netanyahu is also preparing to go it alone.
Some think Iran’s newly elected Hassan Rouhani, who takes over as president next month, will extend an olive branch. This is pure fantasy!
Rouhani is a wolf in sheep’s clothing. He was hand-picked by Iran’s Supreme Leader Ali Hosseini Khamenei to for two purposes …
First, Rouhani needs to satisfy Iran’s increasingly restless public. The massive protests of the last few years represent a real threat to Iran’s theocratic regime. The daily struggles created by economic sanctions are real. Rouhani must convince them he is working to end the country’s economic isolation.
Second, Rouhani will buy time with the Western powers by pretending to be a moderate, reasonable leader. Meanwhile the nuclear and missile programs will move forward. The Iranian regime believes that once it has nuclear warheads and missiles to deliver them, it can force an end to the devastating economic sanctions.
I believe both the U.S. and Iran underestimate Netanyahu’s willingness to go to war. One way or another, he will stop Iran from obtaining nuclear weapons.
Netanyahu’s “Face the Nation” appearance last week was a clear warning to the United States and other world powers. Incredibly, almost no one noticed. (See my publisher Brad Hoppman’s excellent July 17 analysis of the media missing the mark.)
The Obama administration is not blind. They know war between Iran and Israel is all but certain. They are doing all they can to postpone the inevitable.
The U.S. has its own reasons to stop Iran. So do other regional powers like Saudi Arabia. They simply want Israel to do the dirty work.
The good news: Iran will not have a chance to nuke Israel.
The bad news: The war to stop it will be ugly.
Here is how I think events will unfold …
- An Israeli strike on Iran nuclear facilities and missile development infrastructure will lead to …
- Vicious air war over Syrian, Lebanese and Iraqi airspace, followed by …
- An Israeli land invasion of Lebanon to neutralize Hezbollah’s rocket capacity, while …
- Iran tries to choke off oil exports through the Strait of Hormuz!
Then it will get even worse …
- Egypt’s paramilitary Muslim Brotherhood will obstruct the flow of oil through the Suez Canal.
- The final blow: an Iranian missile strike on Saudi oil fields.
When all this happens — and it will — world markets will suffer the worst one-day loss since 9/11. Crude oil could skyrocket to as high as $200. I expect to see gold make daily jumps of $100 or more.
If U.S. carrier groups in the Arabian Sea come under fire, we could see $300 oil and $2,000 gold — or even more!
I refuse to be guilty of willful blindness. That’s why I’m telling my subscribers how to prepare.
In Global Resource Hunter, I am planning hedges against the stock market’s visceral reaction to the coming Israeli strike. And my Junior Resource Millionaire subscribers will get recommendations designed to rack up substantial profits in the coming crisis. In both services, I am aiming to help members to maximize their profit potential in the wild swings we will see for both commodities and equities.
Whatever you do, keep your eyes open your eyes and prepare for the inevitable. You can survive — and even profit — from the trouble ahead. Don’t wait too long.
Best wishes,
James
