Oil prices hit a 6 week high today, as cold weather gripped most of the country.

Over the weekend the nation was hit with a cold front that reminded oil traders that the high demand winter season is on its way, and could help reduce a lot of the oversupply that the market is currently looking at.

The landslide victory of current president Mahmoud Ahmadinejad and the announcement of same, only hours after the voting polls closed, even though paper ballots had to be hand counted, has cast serious doubts about the election results.

Last week I wrote of Iran's great potential but today much of that potential has evaporated for the time being, and perhaps for another four years. The rulers of Iran have decided that the devil they know is better than the one they don't. Unfortunately, as far as politicians go, they may have gotten exactly that.

Editor's Note: This post was written by Terry Woo, one of Minyanville's sharpest minds AND/OR brightest bulbs. For more perspective AND/OR insight, visit www.minyanville.com.

Crude oil is trading lower for a third day in a row.

Currently there's talk out there of demand destruction in other countries (i.e. China's slowing economic growth and slowing U.S. economy). But I don't think there has been enough coverage on financial television regarding Iran.

Remember crude's breakout when the world speculated Israel was preparing to attack Iran's nuclear facilities. And remember more upward pressure when Iran retaliated by test firing its long-range missiles.

As reported by CNN yesterday, Undersecretary of State William Burns is accompanying an EU delegation and will meet with a top Iranian nuclear official... something that hasn't happened in decades! It's a game changing event. That combined with North Korea (cooperating with the world in giving up its pursuit of nuclear weapons), I believe this is simply the Iranian risk premium being taken out of the price of oil.

According to the Financial Times, "Companies doing business in "terrorist-sponsoring states" could once again have their names under scrutiny under a controversial plan being revived by the Securities and Exchange Commission."

In June, the SEC sparked controversy by posting the names of companies that did business with Iran, Sudan, Syria, North Korea, and Cuba. The agency quickly removed the list amid complaints from companies, who complained that the SEC didn't research the materiality of the connections.

Now the SEC is considering putting the list back up, and rightfully so. This is all about disclosure and transparency: if investors don't feel that the connections are material, they can ignore the list. But there are people who want to know whether the companies they're investing in have ties to terrorist states, and the SEC has a role in making information available to investors who request it.

More information for investors is always a good thing and if companies are embarrassed about showing up on the list, maybe they should reconsider their ties to these countries.

What's up with those folks over at Wachovia (NYSE: WB)? It seems like they may have lost hold of the wheel. They've accidentally given up customers account balances to crooks. They have offered refuge to questionable funds. Now, it seems they've been sucked, with seven other banks, into a Federal investigation regarding the rigging of bids for government investment purchases. What has happened to the conservative Wachovia I used to know?

On May 20, Charles Duhigg had in The New York Times an excellent exposé regarding another nasty round of cyber crime. Wachovia was in no way at fault for the release of information leading to the account attacks, but its institution was one of many that apparently surrendered funds to criminals. I had always considered Wachovia to be an iron-clad safe institution. Someone must have missed a turn.

MAJOR PAPERS:

• Time Warner Inc (NYSE: TWX) senior executives are considering reducing the company's cable-TV holdings over time, reported the Wall Street Journal.

OTHER PAPERS:

• The $27B private equity buyout of Clear Channel Communications Inc (NYSE: CCU) is in greater jeopardy as the California Public Employees' Retirement System, or CalPERS, said yesterday that it plans to vote against the deal, reported the New York Post.
• According to diplomatic sources in Beijing, Iran and North Korea are working to "deepen cooperation" on the countries nuclear weapons technology, reported the Telegraph.
• India's Economic Times reported that Mid-sized Indian pharmaceutical companies including Orchid Chemicals, Strides Arcolab, Glenmark Pharma, Granules India, Shasun Chemicals and Plethico Pharmaceuticals are all looking for acquisitions in Russia, Europe and the United States.

WEBSITES:

• LightReading.com reported, citing a source close to the matter, that Sprint Nextel Corporation (NYSE: S) is considering a buyout of Vonage Holdings Corporation (NYSE: VG) and the two have been in talks to attempt to resolve Sprint's patent lawsuit against the VoIP provider.
• Rumors are swirling that "quality problems" may cause Apple Inc (NASDAQ: AAPL) to delay the launch of its upcoming iPhone, according to LoopRumors.com, citing Smarthouse News Australia.

While tensions in Iraq grab most of the military headlines, the geopolitical threat posed by North Korea remains ever-present. And with its dominant role in missile systems, no company comes to mind more readily than Raytheon (NYSE: RTN) as advisors and analysts assess these risks.

Indeed, Keith Fitz-Gerald, editor of The Skeptical Investor, sees this leader in missile defense as a "stellar choice" to protect one's long-term portfolio. Although involved in everything from "military radios to aircraft and satellite communications systems", the advisor is most attracted to the stock due to the firm's Phalanx weapons system, which he describes as a "super-high-speed close-in weapons defense system used aboard our naval vessels."

He says, "the Phalanx basically throws up a wall of lead and can track hundreds of targets simultaneously while prioritizing their threat level automatically." Fitz-Gerald notes that its Phalanx system is so quick and efficient that it could "actually shoot down an outbound missile if it had to."

These systems, he believes, are increasingly important due to North Korea. He says, "Raytheon has particular expertise in target identification, tracking and destruction-particularly when it comes to missiles and other weapons that some nut job like Kim Jong-Il or other rogue nations could try to rain down on our troops and allies in the future."

Meanwhile, the advisor views Raytheon as a conservative large cap stock, well suited to the current market and a worthy addition to his "Compound Growth Monsters" portfolio. And while he generally prefers a dividend higher than Raytheon's 1.9% yield, he concludes, "Given the extraordinary role this company is playing in our defense and the size of the defense contracts that are likely to come its way, I'm willing to make an exception."

Just when you've thought you had seen it all, the Bush administration want to block higher-end consumer electronics -- including the, gasp, iPod -- from going ashore to North Korea. In a strange type of semi-sanction on all-things-gadgetry, the U.S. government's first-ever effort to use trade sanctions to personally aggravate a foreign president is now underway. Joy, joy!

According to reports, this new sanction expressly targets items believed to be favored by Kim Jong II -- from unknown sources I guess. It's hard to imagine the leader of one of the most repressive regimes in the world jamming to his iPod while watching the NFL on a Plasma TV, but hey, maybe he is just like the rest of us...except that he's a tyrant bent on world domination. Go figure.

I doubt this highly-touted move by the Bush administration will do much, if anything, to block access to some of the world's neatest items from the North Korean government. Among the other items beyond the iPod and Plasma TVs are cognac, Rolex watches, cigarettes, artwork, expensive cars, Harley Davidson motorcycles or even personal watercraft like Jet Skis.

Start screaming crazier and crazier edicts and pronouncements if you want to be a tyrant these days. If you have any doubts about this, read a few of the gems that have escaped from the lips of North Korean President Kim Jong Il, Iranian President Mahmoud Ahmadinejad or Venezuelan President Hugo Chavez. I emphasize their first names because they make everything so personal and we see and hear them so often that I feel like they must want to be friends in some perverse way.

Hugo has called President Bush the devil during a worthless diatribe to the United Nations, and Kim has threatened the United States, Japan, South Korea, and anyone else that questions his tyrannical, ego-maniacal nuclear ambitions. However, you will note he has not threatened China. This I point out as evidence that he may appear crazy, but he is not stupid!

Mahmoud, on the other hand, has threatened only a third of the world including, with no lack of emphasis, Israel. He has stated Iran has no compunctions about losing 250,000 of its own people in the process of a first strike. However, the fact that Israel has second strike capability and the figure could reach 25 million people has not made it into any of his speeches. The latter figure no doubt might test the limits of his list of willing martyrs.

While there is an outside chance that this is all bluster, I can assure you (having started this story while traveling in Jerusalem) that the Israelis are taking these comments very seriously and are not likely to sit around doing nothing forever. While the idea of Israel striking first would not be unprecedented, it would also raise the stakes in what would be the scariest of bad-boy games.

If Mahmoud backs the Israelis into a corner... well that might be the all time dumbest stunt ever and could be the opening scene for Jackass 3. My perception is that Mahmoud will continue to threaten with the intent of keeping his enemies and rivals off balance and unfortunately might guess wrong about the edge of sanity (never mind wisdom, we long ago passed that mark), where he appears to teeter back and forth.

Patience, patience, this story is about economics...

Usually, I make a comment regarding the Asian markets toward the end of my pre-market summary. Not today. Today I woke up to hear of a successful underground nuclear test N.Korea claims to have pulled off. The Russians have confirmed but the U.S. is still investigating. Needless to point out the implications of such an act as even "The Chinese government is firmly opposed to this." The U.S. is already in talks with international allies trying to push sanctions.

Naturally, the South Korean stock market reacted and stocks plunged, closing 2.4% lower. Other Asian markets also fell on the news: Singapore, Sydney, Jakarta and Manila. The Hang Seng, Hong Kong's blue-chip index, lost 1.2%. Japan and Taiwan markets were closed for a holiday. European markets, on the other hand, are mixed at the moment.

Oil is back above $60 a barrel as once again reports of OPEC cutting production to 1 million barrels of crude a a day have surfaced. Geopolitical concerns also helped oil gain some ground.

Also affecting the markets this week will be earnings season that is to start in full swing and a few economic reports, mainly the FOMC minutes released on Wednesday and retail sales on Friday.

Some M&A news:

• PNC Financial Services Group (NYSE: PNC) agreed to buy Mercantile Bankshares Corp. (NASDAQ: MRBK) for $47.24 per share in a cash and stock deal worth around $6 billion.
• The Dolan family, which controls Cablevision Systems Corp. (NYSE: CVC) offered to take Cablevision private and buy out the company's public shares for $27 a share in cash, according to a report in the Wall Street Journal.
• Citigroup Inc. (NYSE: C) CEO said the bank is considering acquisitions of banks in Taiwan, Turkey, Central America, China and Western Europe, according to an interview published Monday in the Financial Times.

Futures are negative in early morning trade (8:00 a.m.), pointing to a lower start for stocks.

Here's a look at some key Blogging Stocks:

Apple Computer, Inc. (NASDAQ: AAPL) last traded at $73.95 in pre-market trading, down from Friday's close of $74.22. This article examines retro, or classic games, the kind Apple will offer on iPod.

General Electric Company (NYSE: GE) closed at $36.14 Friday. GE is among the companies money managers seek for dividend payouts.

Time Warner Inc. (NYSE: TWX) last traded at $18.65 in pre-market trading, down from Friday's close of $18.78. Waner Bros' The Departed and New Line Cinema's The Texas Chainsaw Massacre: The Beginning topped the weekend box office list with $27 million and $19.5 million respectively.

Wal-Mart Stores, Inc. (NYSE: WMT) closed at $48.32 Friday. A man is suing Wal-Mart for falsely accusing him of stealing a jacket at the Wal-Mart Supercenter in Coralville.