UN statement on Iran’s nuclear program delayed

March 18, 2006

The UN Security Council still has no statement on Iran’s nuclear enrichment program. The U.S. would like a Presidential statement, which means all 15 members of the Security Council have reached agreement. The main point of contention right now is timing, with the U.S. pushing for a shorter agreement by the Iranians, while China, France, and Britain wanting a four to six week window at least. This would allow the IAEA a chance to work through its channels, instead of superseding its authority with a direct command from the UN.

What It Means:
The U.S. and the UN want Iran to stop any uranium enrichment, to return to negotiations, and provide objective guarantees that its nuclear program is not being used for military purposes. Iran claims it is only using it for peaceful purposes, and so is within the guidelines of the nuclear non-proliferation treaty.

Action Steps:
None immediately, although it would probably not be a bad idea to add oil and gas to your portfolio, as these commodities will only increase in value. If the situation in Iran reaches more of a crisis, then stock prices will go down as a result, so commodities would provide a good hedge for the short term as well. Regardless, the balance of power is shifting towards the Middle East, so these commodities are good for the long term, as well.

Source: State Dept. Press Briefing, March 17, 2004