Iran Detains 10 US Sailors And Seizes Our Boats

[Reub]

Is this just a misunderstanding? Is it just coincidence that it occurs just before Obama's the State of the Union address? Will it be a fleeting memory or a Jimmy Carter long term disaster? What if we just add another few billion dollars to Iran's coffers to help the problem go away? Aren't they our new treaty allies who we've agreed to defend against any Israeli or Saudi attacks? Why are they treating us this way?

[MediumTex]

Iran may not have fully understood what reaching an agreement with the U.S. regarding its nuclear program was going to do to the price of oil.

I suspect they are doing this hoping it will juice the price of oil a little, but I think it's too late for that.  The oil market has completely repriced Middle East risk, and that train has already left the station.  It's going to take more than a few sailors to change that dynamic.

[Reub]

MT, how has the plunge in oil effected Texas' economy so far?

[MediumTex]

MT, how has the plunge in oil effected Texas' economy so far?

For people who are in the energy business it has been terrible.  Everyone else is loving it.  It puts money back in everyone's pocket every time they fill up their car.

[ochotona]

The Dallas Fed governor says the oil price is strongly affecting the Texas economy overall, and no relief seen until 2018.

I was laid off in 2015, and I know many many out of work. If you live in the tech bubble island in Austin, you don't see it. Austin is our California.

[Mountaineer]

Iran releases U.S. Navy sailors

Iran on Wednesday released 10 U.S. sailors detained for several hours after two small U.S. Navy boats crossed into Iranian waters.

The state-affiliated Islamic Republic News Agency said the sailors — nine men and one woman — and their boats were held at an Iranian military base before being returned to international waters and freed. The Pentagon confirmed the release and said there were no indications the sailors were harmed during their detention.

Secretary of Defense Ash Carter said he was pleased the sailors “have departed Iran and are now back in U.S. hands."

“I want to personally thank Secretary of State John Kerry for his diplomatic engagement with Iran to secure our sailors' swift return,” Carter said.

Kerry issue a statement saying the issue was resolved peacefully and efficiently.

"I want to express my gratitude to Iranian authorities for their cooperation ?in swiftly resolving this matter," Kerry said.

Oh no, not again!  Swift and boat used in the same context. 

... M

[MediumTex]

The Dallas Fed governor says the oil price is strongly affecting the Texas economy overall, and no relief seen until 2018.

I was laid off in 2015, and I know many many out of work. If you live in the tech bubble island in Austin, you don't see it. Austin is our California.

Every commodity boom is followed by a bust.  It's like clockwork.

The same thing happened with oil in the 1980s, and even though many in the energy sector got wiped out, it created a huge economic tailwind for the U.S. economy, while also hastening the demise of the Soviet Union.

I'm sorry to hear that you were on the bad end of it in 2015.

[Pointedstick]

I wonder when it would be a good time to buy up oil.

[PP67]

PS, I just created a new post on this subject before I read this...

Interested to know your thoughts...

[MediumTex]

I wonder when it would be a good time to buy up oil.

The problem is that it's hard to buy oil.  You have to buy an oil producer, and it's hard to tell what a given producer's actual cost of production is.

The majors will survive this downturn, but lots of independents are going to disappear.  The market knows this, and thus the majors aren't down as much as you would think and many of the smaller leveraged producers are already trading as if they were worthless.

[Reub]

Iran released footage of our men on their knees at gunpoint.  One of them apologized on tape. That's not a problem  is it?

[MediumTex]

Iran released footage of our men on their knees at gunpoint.  One of them apologized on tape. That's not a problem  is it?

As best I can tell, U.S. military boats intentionally violated Iranian waters, presumably for some military purpose.  In general, such actions can be characterized as acts of war.  Simply making the sailors apologize on tape before releasing them doesn't seem like a big deal to me.

If I wanted to assign blame for the incident, I would ask the U.S. Navy WTF they were thinking doing an operation like that on the eve of the sanctions being lifted and a de-escalation of tensions between the two countries.

[I Shrugged]

Trying to scuttle the deal, maybe?

[Xan]

Went to a Nascar race at Texas Motor Speedway for my bachelor weekend (had never done one before, and haven't been back since, but it was fun) and the flyover before the race was a B-52.  And it was LOW, man.  Right above our heads.  Felt like it covered the whole track.  Spectacular.