Following the Iran Situation,

Hey folks,

As you know, we having been talking about the Iran situation. I have been urging President Bush to continue to seek a peaceful resolution. I was hoping that the package of incentives created by us and other world powers would be a step in the right direction. This all but completely took the possibility of aa imminent military strike off the table. Well, as long as President Bush keeps his word.

It’s in their hands now, EU foreign policy chief Javier Solana met with Iran's top nuclear negotiator Ali Larijani at the Supreme National Security Council building in central Tehran, and gave Iranian officials a package of incentives that are to persuade Iran to curb its nuclear program.

Iranian Foreign Minister Manouchehr Mottaki said ,

"If there is the political will to solve Iran's nuclear issue without any attempt to politicize it, I think we can come to a comprehensive agreement,"

The details of this package are remaining sealed, and terra incognita, to the public. Journalists were barred from the building at the time of the transfer. Why so secret? I do not know, but I wonder if the secrecy will play into future actions at a later time.

Now this is a step, but not the whole enchilada. You have just last week, threats by Iran's supreme leader, Ayatollah Ali Khamenei to disrupt the world's oil supply if Tehran is punished over its nuclear program, which immediately saw the price of oil rise.

The good news, if you can call it that, is that oil prices dipped today amid signs that crude supplies remain adequate for now, but analysts said concerns about possible disruptions in global oil flows will keep prices at current levels.

According to Victor Shum, energy analyst with Purvin & Gertz in Singapore,

"Until we see signs of real change in demand, pricing will generally stay in the low-70s range," He said "It will take a rather big supply disruption, either actual or perceived, to push prices to $75."

Well that’s because the immediate rise was a knee jerk reaction to Iran’s threat. The TRUTH is, Iran gets most of their OWN oil imported. Disrupt their oil supplies, I guarantee you, they would be quick to negotiate.

All this may be a step in the right direction. As long as they keep their end, and we keep ours. If not, this is all for not, and could turn VERY bad, VERY fast.
Peter