Israel-Iran Tension Causing Oil Price Surge, CNBC Analyst Says
In early trading on June 6, the price of a barrel of oil rose $6 and was holding steady at near-record highs in excess of $133. According to CNBC contributor John Kilduff, a high-ranking Israeli official caused the spike when he commented on tensions between
â[W]hatâs really lit up this market big time here is, which hasnât been really mentioned. I havenât heard too much and Iâm surprised at, is deputy minister in Israel said this morning that an attack on Iranâs nuclear facilities is quote, âunavoidable,ââ said Kilduff on CNBC's âSquawk on the Streetâ June 6.
âThis is one of Ehud Olmertâs deputies â leading deputies, and
Kilduff was referring to comments by Israeli Transport Minister Shaul Mofaz published in the Israeli newspaper, Yedioth Ahronoth.
âIf equities can really come back into favor, a lot of this speculative money will come out of the market,â Kilduff said on the May 7 âThe Call.â âAnd I think one of the key things as well is what happens to
Other factors were blamed for this most recent spike including investment bank Morgan Stanleyâs (NYSE:MS) forecast that oil would reach $150 a barrel in a month due to Asian demand and a dollar weakened by the Labor Departmentâs announcement on June 6 that unemployment jumped a half percentage point in May.