Strait of Hormuz

U.S oil prices are hitting levels not often seen in the winter time as instability with Iran, coupled with surging demand in developing nations drive up prices.

There was good news on Iran — at least in the estimation of U.S. intelligence officials — on Thursday. The U.S. believes Iran will not intentionally provoke a violent reaction from the United States and Israel has not decided whether it needs to make a pre-emptive strike on Iran.

The tension between Iran and the United States grew a little stronger this weekend. New sanctions, missile firings and another ultimatum from Iran all marked a weekend that saw neither side flinching in their ongoing confrontation.

Iran says that if the U.S. goes forward with its threat to impose sanctions on the country’s central bank, which could cripple its oil exports, then it will shutdown the Straits of the Hormuz. The U.S. says that’s just one red line that should Iran cross would trigger military actions.

Iranian leaders blame the US and Israel for the assassination Wednesday of an Iranian nuclear scientist. American officials, on the other hand, are publicly warning Iran not to cross a couple of “red lines.”