It's an invitation that may sway some to think that Iran is cooperating regarding its nuclear program...or it may represent just another delay tactic by Iran toward the international community. Iran Monday invited the International Atomic Energy Agency [IAEA] to work jointly on a plan to dispel concerns regarding the nation's nuclear program.
Iran maintains that it's moving forward with its nuclear program to meet the nation's energy needs, and says it will use nuclear technology for peaceful purposes only. IAEA, the United States, the U.K., France, and Germany are concerned that Iran will use the nuclear technology for military purposes. Uranium is a required ingredient for both civilian nuclear power and nuclear bombs/warheads.
The U.N.'s IAEA is seeking a full enrichment cessation and also wants Iran to stop building a plutonium-producing reactor.
The oil markets were virtually unchanged Monday following the news of Iran's invite: crude oil fell 4c to $69.10.
Some diplomats argued Monday that the invite might generate international good will by providing evidence that the nation is no longer in "stonewalling mode" regarding IAEA inspection of its nuclear program. Iran's nuclear program was clandestine until it was revealed by an Iranian dissident group in 2002.
Among the major powers, the initial evaluation of the Iran gesture was mixed. Germany supported the invite and potential talks, the United Kingdom was neutral, and France was opposed to the overture. Meanwhile, U.S. officials remained skeptical, with State Department spokesman Tom Casey telling The New York Times, "I don't think Iran's track record is particularly noteworthy or particularly likely to give me or anyone else confidence" that the discussion will achieve IAEA objectives.
Fly Analysis: Tensions over Iran's non-compliance with IAEA directives have raised concerns in oil circles. Iran produces more than three million barrels of oil per day, or about one-tenth of OPEC's 30.1 million per day production total, and with the cushion between global oil production and consumption oil small, any disruption of Iranian oil -- via an embargo or other means -- would drive oil's price substantially higher, analysts say, probably above $80 per barrel. Further, analysts say ongoing tensions have added roughly a $5-$8 "insurance" premium to the current oil price.
The oil markets were virtually unchanged Monday following the news of Iran's invite: crude oil fell 4c to $69.10.
Some diplomats argued Monday that the invite might generate international good will by providing evidence that the nation is no longer in "stonewalling mode" regarding IAEA inspection of its nuclear program. Iran's nuclear program was clandestine until it was revealed by an Iranian dissident group in 2002.
Among the major powers, the initial evaluation of the Iran gesture was mixed. Germany supported the invite and potential talks, the United Kingdom was neutral, and France was opposed to the overture. Meanwhile, U.S. officials remained skeptical, with State Department spokesman Tom Casey telling The New York Times, "I don't think Iran's track record is particularly noteworthy or particularly likely to give me or anyone else confidence" that the discussion will achieve IAEA objectives.
Fly Analysis: Tensions over Iran's non-compliance with IAEA directives have raised concerns in oil circles. Iran produces more than three million barrels of oil per day, or about one-tenth of OPEC's 30.1 million per day production total, and with the cushion between global oil production and consumption oil small, any disruption of Iranian oil -- via an embargo or other means -- would drive oil's price substantially higher, analysts say, probably above $80 per barrel. Further, analysts say ongoing tensions have added roughly a $5-$8 "insurance" premium to the current oil price.
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