From The Asia Times
By Jephraim P Gundzik

Seemingly oblivious to increasing the chances of potentially fateful confrontation, Iran this week abruptly informed the International Atomic Energy Agency (IAEA) that it would resume nuclear-fuel research next week, and as a follow-up, failed to show up for a scheduled meeting with the UN watchdog to explain what it intended doing.

Senior Iranian officials snubbed Mohamed ElBaradei by missing a meeting in Vienna after the IAEA chief demanded an explanation of Tehran’s nuclear plans. Earlier, Iran told the IAEA that it was resuming research into nuclear fuel after a two-year suspension, but refused to supply details.

As matters drift in this sea of uncertainty, and talk inevitably focuses on the possibility of a military strike against Iran – either by the Israelis or the US, or a combination of both – international oil prices can be expected to rise higher in late January, propelling the price of gold above US$600 per ounce.

And if a military strike against Iran does materialize, it is reasonable to expect oil prices to leap well above $100 per barrel and the price of gold to approach $800 per ounce.

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