According to the President of Iran the problem is being caused by the attacks on neutral ships by “The Great Satan”. By Todd Horwitz, Bubba Trading.

 

Can’t We Get Along?

Things got testy again this week with our good friend Iranian President Hassan Rouhani and Mr. Trump sparring over who is causing c to blow up in the Strait of Hormuz. According to the President of Iran the problem is being caused by the attacks on neutral ships by “The Great Satan”. According to Mr. Trump, and video evidence it is the Iranian Republican Guard. Why would the U.S. blow up ships laden with oil to our ally Japan? It makes no logical sense and Prime Minister Abe of Japan took that position last week in a visit to Tehran.

But don’t let logic get in the way of dealing with Mr. Rouhani. He dismisses all video evidence of the attacks as just another lie created by the U.S. Mr. Abe is in a tough position. The U.S. is his biggest ally, but he must rely on Oil from Iran to keep the wheels spinning at home. His visit to Tehran can best be described as a rebuke. He came as a peace maker and left with his tail between his legs. Mr. Rouhani is not about to let the truth get in the way of his dealing with Mr. Trump. He is furious that the U.S. pulled out of one of the worst deals since the Munich accord in 1939. If history is any lesson Mr. Trump did the right thing. Iran has no intention of honoring the weak nuclear accord negotiated by the Obama administration.

The next question is where do we go from here? If the attacks continue and they probably will, at what point does the U.S. Navy step in to protect the shipping lanes. The U. N., one of the most spineless organizations that has ever existed will do nothing. Or worse they will draft a nasty letter saying if the U.S. and Iran can’t get along better, that they will draft another nasty letter. This clearly is not the answer.

Going back to the hostage crisis of 1979, forty years ago. We should have learned our lesson. If President Carter had backed up the embassy when the “students” attacked, there is a good chance that he would have been a two-term president. Instead he took the passive road and when Ronald Regan was elected the hostages were held until he was inaugurated. Carter left office in humiliation as the Iranians didn’t want anything to do with Regan. I think that this case can be made here. With all of the Saber rattling in an eyeball to eyeball challenge I think Iran will blink and the attacks on the Oil tankers will suddenly vanish. We will see!
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Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.