Late this afternoon, Nymex crude oil futures spikedover $5 to $68 on rumors that Iran had fired on a U.S. naval ship in the Persian Gulf. The U.S. government quickly and flatly denied the rumor, but the mere speculation sent crude prices to their highest level in over six months (prices since came down $4 to settle just above $64.)
So if a single rumor - debunked by the government - can push oil prices up 5 points, what does that say about the current volatility in the oil pits? And more importantly, what's the trade when tensions are running so high?
Retired U.S. Army Colonel Jack Jacobs, an NBC military analyst, joined the guys on the phone to discuss today's rumor - and why it probably won't be the last.