I agree. The Iran situation shouldn't be downplayed at all. This is a really serious situation. Iran has the military capability, know how and the very real possibility of grabbing the straights of Hormoz. That would cause catastrophy in the oil markets. Lets face it. The window for diplomatics passed long ago.

Heres how I understand the overall situation with oil and Iran. US doesn't buy oil from Iran however countries in Europe and Asia and whoever else do. If something really bad happens in Iran then many countries are going to be scrambling for another supply.

Since the US hasn't built many refineries since the 1970's and 80's there won't be enough to go around and then comes the peak oil. 150/barrel is the minimum but the sky is the limit.

And if there were to be a major terrorist attack against oil refineries in the us and europe it would be a very bad day.

This situation is going to turn into a bloody mess for all sides.