Energy Stocks: Coming Mideast War To Send Oil Prices Soaring!

| February 13, 2012 | 0 Comments

It’s an ordinary Wednesday morning in Tehran, Iran.  Thousands of everyday Iranians are making their way through heavy rush-hour traffic, trying to get to work on time.

Out of nowhere a motorcycle bearing two riders weaves its way through the cluster of vehicles clogging the busy streets.

All of a sudden, the rider on back raises his arm and tosses an object at a small gray Peugeot 405.  The object sticks to the car and the motorcycle speeds away in the blink of an eye.

Moments later there’s an ear-splitting explosion and the car erupts in a ball of fire…

You might think I’ve just described a scene from the next big Hollywood action film.  But you’d be wrong.  This is an account of a real-life assassination carried out in broad daylight on the streets of Tehran.

And it happened less than a month ago.

According to the Washington Post, the target of the attack was 32-year old chemical engineer, Mostafa Ahmadi-Roshan.  He was killed instantly by a magnetic bomb that was slapped onto his car as he traveled to work at Iran’s main uranium-enrichment facility.

Ahmadi-Roshan is just one of several Iranian nuclear scientists to meet their end in recent years.

The assassinations are believed to be part of a broader strategy to disrupt Iran’s attempts to build a nuclear bomb.

Over the past few years, several Iranian nuclear scientists have been killed in apparent professional hit jobs.  There have also been reports of mysterious explosions at Iranian military and industrial sites as well as gas transportation lines.

And don’t forget the cyber attack against Iran’s nuclear computer systems in the summer of 2010.  Computer networks essential to Iran’s uranium enrichment infrastructure were damaged by the infamous Stuxnet computer worm.

Iranian officials have been quick to assign blame.

They accuse Israeli and US intelligence services of carrying out the attacks and other acts of sabotage.

While both the Israelis and Americans deny involvement in the attacks, it’s perfectly understandable why Israel would be going to such extremes to prevent Iran from getting the bomb.  Over the past several years, Iranian President Mahmoud Ahmadinejad has stated many times that Iran is dedicated to wiping Israel off the map.

And just recently, Iran’s Supreme Leader, Ayatollah Ali Khamenei ratcheted up the rhetoric to a fevered pitch.

In a major speech, he said Islamic law compels Iran to kill all Jews and annihilate Israel.  It’s the first time Iran’s leaders have provided religious and legal justifications for their evil plot.

Of course, having a nuclear capability would give Iran the means to carry out these threats.

But Israel is not about to sit back and let Iran get the bomb.

To do so would put Israel and the Jewish people at risk of suffering a second Holocaust.  And with Iran getting closer and closer to achieving their nuclear goals, the clock is ticking on what many experts believe will be a preemptive strike by the Israeli military.

In fact, US Defense Secretary Leon Panetta recently provided a timetable for when such a strike is likely to occur.  The Washington Post reports that Panetta believes “there is a strong likelihood that Israel will strike Iran in April, May, or June….”

And you know what war in the Middle East means…

Oil prices are going to soar!

With oil prices poised to shoot higher in coming months, investors have an opportunity to make some serious money.  I’m not a big fan of the oil commodity ETF, United States Oil Fund (USO), as it invests in oil futures contracts.  And USO has a history of underperforming spot oil prices.

You’d be much better off going with an ETF that invests in oil and gas companies.

The most popular of these is the Energy Select Sector SPDR (XLE). This ETF holds many of the top companies in the sector including Exxon Mobil (XOM), Chevron (CVX), and Schlumberger (SLB).  Shares of these companies will definitely surge higher on any Middle East conflict.

The showdown between Israel and Iran is rapidly approaching.  War in the Middle East this summer is almost a near certainty.  Get positioned now to profit when oil prices go through the roof!

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Category: Commodities

About the Author ()

Robert Morris is the editor of Penny Stock All-Stars, an investment advisory focused on discovering small-cap and micro-cap stocks that are destined to become the market’s next Blue Chips. The Wall Street veteran and small-cap stock specialist is also a regular contributor to Penny Stock Research. Every week, Robert shares his thoughts with our readers on a variety of penny stock-related topics. In addition to Penny Stock Research, Robert also writes frequently for two other free financial e-letters, ETF Trading Research and the Dynamic Wealth Report. He’s also the editor of two highly successful and popular investment advisories, Biotech SuperTrader and China Stock Insider.

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