Israel Gets Nods From Obama Administration and Saudis on Iranian Attack

Dear Gold & Energy Advisor Subscribers,

Oil is getting spanked. Fears of deepening recession and weaker consumer demand for gasoline has been driving oil lower in the last two weeks. But before you dump your energy investments keep in mind a very serious supply Middle East interruption could take place any day and we could be back over $75 a barrel very quickly.

The likelihood of a pre-emptive Israeli strike designed to slow Iranian development of nuclear weapons continues to grow. Vice President Joe Biden signaled on Sunday’s ABC “This week” that the Obama administration would not stand in the way if Israel chose to attack Iran's nuclear facilities, even as the Chairman of the Joint Chief of staff. said any attack on Iran would be destabilizing.

Biden's remarks suggested a tougher U.S. stance against Iran's nuclear ambitions. Nonetheless, administration officials insisted his televised remarks Sunday reflected the U.S. view that Israel has a right to defend itself and make its own decisions on national security.

During his interview on ABC's "This Week," Biden also said the U.S. offer to negotiate with Tehran on its nuclear program still stands. Some thought the administration's approach might change in light of the Iranian government's harsh crackdown on protesters after the June 12 presidential election. Opponents of the ruling authorities claimed the vote was rigged against them.

"If the Iranians respond to the offer of engagement, we will engage," Biden said.

It was after meeting Israeli Prime Minister Benjamin Netanyahu at the White House on May 18 that President Barack Obama said it should be clear by year's end whether Iran was open to direct negotiations. Obama told The Associated Press last Thursday that persuading Iran to forego nuclear weapons has been made more difficult by the crackdown after the disputed re-election of President Mahmoud Ahmadinejad.

Biden was asked whether Netanyahu was taking the right approach by indicating that Israel would take matters into its own hands if Iran did not show a willingness to negotiate by the end of the year.

"Look, Israel can determine for itself — it's a sovereign nation — what's in their interest and what they decide to do relative to Iran and anyone else," Biden replied. He added that this was the case, "whether we agree or not" with the Israeli view.

Biden was then asked more pointedly whether the U.S. would stand in the way if the Israelis, viewing the prospect of an Iranian nuclear bomb as a threat to the existence of the Jewish state, decided to launch a military attack against Iranian nuclear facilities.

"Look, we cannot dictate to another sovereign nation what they can and cannot do," he said. Pressed further on this point with a reminder that the U.S. could impede an Israeli strike on Iran by prohibiting it from using Iraqi air space, Biden said he was "not going to speculate" beyond saying that Israel, like the U.S., has a right to "determine what is in its interests."

Meanwhile a report in the London’s TimesOnline is reporting that the Saudis have given the nod to Israeli raid on Iran ...

 “The head of Mossad, Israel’s overseas intelligence service, has assured Benjamin Netanyahu, its prime minister, that Saudi Arabia would turn a blind eye to Israeli jets flying over the kingdom during any future raid on Iran’s nuclear sites.

Earlier this year Meir Dagan, Mossad’s director since 2002, held secret talks with Saudi officials to discuss the possibility.

The Israeli press has already carried unconfirmed reports that high-ranking officials, including Ehud Olmert, the former prime minister, held meetings with Saudi colleagues. The reports were denied by Saudi officials.

“The Saudis have tacitly agreed to the Israeli air force flying through their airspace on a mission which is supposed to be in the common interests of both Israel and Saudi Arabia,” a diplomatic source said last week.

Although the countries have no formal diplomatic relations, an Israeli defence source confirmed that Mossad maintained “working relations” with the Saudis.

John Bolton, the former US ambassador to the United Nations who recently visited the Gulf, said it was “entirely logical” for the Israelis to use Saudi airspace.

Bolton, who has talked to several Arab leaders, added: “None of them would say anything about it publicly but they would certainly acquiesce in an overflight if the Israelis didn’t trumpet it as a big success.”

Arab states would condemn a raid when they spoke at the UN but would be privately relieved to see the threat of an Iranian bomb removed, he said.

Referring to the Israeli attack on an alleged Syrian nuclear facility in 2007, Bolton added: “To this day, the Israelis haven’t admitted the specifics but there’s one less nuclear facility in Syria . . .”

Recent developments have underscored concerns among moderate Sunni Arab states about the stability of the repressive Shi’ite regime in Tehran and have increased fears that it may emerge as a belligerent nuclear power.

“The Saudis are very concerned about an Iranian nuclear bomb, even more than the Israelis,” said a former head of research in Israeli intelligence.

The Israeli air force has been training for a possible attack on Iran’s nuclear site at Natanz in the centre of the country and other locations for four years. “

The Israelis’ are not going to allow the Iranians to continue much longer in its attempt to build nuclear weapons. A multiple target strike on Iran’s nuclear development sites may be a matter of days or weeks away.

While a Israeli strike would most likely cause the regime in Iran to harden its oppression against its dissidents it could also severely undermine the radical regimes hold on power in two ways.

Iran’s financial condition could be severely weakened by a military conflict. Iran’s economy is already suffering from a crippling inflation and unemployment rate. A military strike at its nuclear facilities would mean the regime would have to make a new investment of tens of billions to replace sites damaged. It would also likely spend billions in any counter strike it decided to launch against Israel.

There’s also the likelihood of a disruption of oil supplies from the entire Middle East. The Iranian’s may very well see the Saudis allowing Israel to use their airspace as an act of war. Shutting down the Strait of Hormuz to hurt the Saudis and the West for 30 to 60 days could take place.

Oil and Gold would likely rise sharply if Israel launches an attack. With the Obama Administration signal and the Saudis on board, the danger continues to increase.

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Best Wishes,

James DiGeorgia

Editor/Publisher