How will the Iran situation affect the markets?
"The tension created by Iranians is needed for Iran's economy. The up trend of the oil prices could create huge cash flow for Iran's government - which is desperately required to continue their daily life. Also, bigger profit for the oil companies - which we will see the result in their coming up earnings. The energy sector remains the strongest in the market for 2007. The bigger the tension, the more fear for the market - that would be the last correction of the markets for this year, which will see it this Spring unless the situation gets out of hand in the Persian gulf." -- Cyrus, Seattle, WA
"The way it plays out will determine how it affects the markets." -- Ray M., Florida
"Iran and oil will kill our economy. Spend less time on subprime and tell the people how many dollars come out of our economy every time oil goes up a dime. Ask Eric Bolling why he pumps something that will kill this economy. He can tell you how many dollars come out of this economy every $1 oil goes up. I respect Mr. Bolling, I just wish he would let the down side of oil trading be known." -- Frank
"Unfortunately, the Iran situation WILL affect the markets. But, like all other situations, it isn't the truth that usually moves the markets. It's the fear of what might happen. In other words, speculation. Call me naive, but why can't markets move on cold, hard facts? When Katrina destroyed oil rigs and refineries, I really had no problem with the oil/gas markets moving higher. Definitely a cut in supply (read - hard fact) leads to the price increase. But I just can't justify in my mind why rumor or 'potential' disruption leads to price increases. 'What if' situations (read - speculation) should not be a part of the markets. I know that's impossible; maybe there should be a separate market for speculators. If one wants to gamble with one's millions, go to Vegas. At least your gambling (and the loss thereof) doesn't affect my savings or investments." -- John S., Perry, Florida
"The markets are growing immune to the voices of Iran's threats. Although it is providing market trading news, and providing lots of speculative and market moving money in the commodities markets. The stock market is totally ignoring any clouds of war on the horizon with their markets moving upward on any weakness shown by USA. The market does like to hear the word diplomacy -- which basically means "do nothing" -- and will trade higher on that news. But, this is a commodity driven market at this point and the ride has been the wildest in years. Oil at an unseen high because of fuel consumption, corn at ridiculous highs supposedly for ethanol, sugar goes up on rumors we can use it for fuel, even orange juice got into record highs and it doesn't fuel anything, well, maybe it does: people in the morning. This is a commodity driven market that has gone just a little wild; free markets are being tested to the limit and are performing beautiful." -- Brian, West Virginia
"I think it will make equity prices go up. If Iran attacked the U.S. Navy, equity prices would go up. If we attack them, the markets would go up. The only thing that ever can possibly happen is stocks up, up and up. Even if oil prices were to go up to $100, consumers would not mind higher gas prices. Lower home prices, more expensive health care, college tuition increasing 10% a year and higher prices for all of the other basic needs do not matter to a consumer. Buy Buy Buy! You can’t lose! Stocks only go up for what is it 4 years now. This is the best! Boo-Yah Baby!" -- Jeff M., Illinois