February 11, 2008

Where's That Iranian Oil Bourse?

Today was supposed to be the day it opened. I think a comment from Tom3 at this post might be right:
The cables were cut to stop Iran from opening their "bourse" which would trade their oil in PetroEUROs.

The US cannot afford to have any of the big oil producers stop using PetroDollars. It would crash the dollar.
Tom3 is not the only one thinking this way. Get this from MarketWatch:
In most instances Internet connectivity can be rerouted, and much of the Middle East has already done this. But what makes this situation unique is that the bourse was being established on Kish Island, a free-trade zone set up by the Iranians in hopes of creating a cool tourist destination.

For an example of what they are up to check out the Web site for one of the new hotels here. See link to Dariush Grand Hotel.

There doesn't seem to be an alternate Internet connection to the island other than the cut cables. I attempted to email the three top hotels on the island and all the email bounced. I was also unable to make a telephone call there indicating a large telecommunications failure.

The Web sites for the hotels are likely to be hosted off the island and are still working.

This sort of telecom and Internet failure/collapse, no matter what the cause, is unlikely to give anyone confidence in an international oil trading system on Kish Island. Too much money is at risk. The island obviously needs satellite access or some form of connectivity back up that is foolproof.

There has always been talk about disrupting commerce by screwing up the Internet. We've just seen a proof of concept, whether done on purpose or by accident.

It doesn't make a lot of difference how it happened if we want to learn a lesson as to how delicate the Internet mechanism can be.

If the cut cable was done on purpose you can expect the U.S. to get blamed although it could have just as easily benefited Britain, China or even Saudi Arabia for that matter. I'm guessing we will never know how it happened or who suffered the most. All I can say for sure is that it does look fishy.


Anonymous said...


Well worth a read.

Johnny English


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