Why would the price of oil increase as tensions between the West and Iran increase?

The price of oil reached an all-time high July of 2008 after Iran test fired missiles capable of reaching Israel. Obviously tensions between the Western world and Iran peaked at this moment, but why would oil prices rise? I just am having trouble seeing the connection between conflict between the West and Iran and a rise in oil prices. Why is it happening? What is the connection?Why would the price of oil increase as tensions between the West and Iran increase?
ANY ';Threat'; that could in ANY way- disrupt the flow of Oil between the Middle East; Asia %26amp; Africa- and the Developed Western Countries- results in the Price of Oil ';spiking'; until that threat passes... We are just TOO Dependent on ALL the Oil from those far eastern countries- to escape a surge in prices- every time a war threat from One of them- appears... :(Why would the price of oil increase as tensions between the West and Iran increase?
Less oil.


If we would have drilled under Clinton or Regan we wouldn't have to worry about the middle east oil and our money would stay home.
Because if the US government did something insane to keep the Israel lobby happy, then Iran would simply put a couple of mines in the Straits of Hormuz. They wouldn't have to attack the US navy or any oil tankers, they might not even have to really put the mines there. Just as long as they said they had, or might.





Nobody sane would then insure an oil tanker to transport oil up the Persian Gulf.





The price would go BOOM! Just the thought of it is enough to push the price up.

mascara