Whether its 'Trade' Wars [8] or 'Real' Wars, tensions appear to be escalating at an increasing clip around the world. The AP is reporting [9] that Israeli officials say Egypt is violating their 1979 peace treaty by deploying tanks in the demilitarized Sinai desert, which borders Israel.
Via AP [9]:
[10]The officials said Tuesday they have made their objections known to the Egyptians directly and through American mediators. They spoke on condition of anonymity because they were discussing a sensitive security issue.Egypt has been building up its military presence in lawless Sinai after Islamic militants there attacked an army post on Aug. 5 and killed 16 soldiers.
Israel has welcomed the crackdown but says tank deployments should have been coordinated. Israel has previously agreed to exceptions to the treaty allowing Egypt to add troops and equipment in Sinai.An Egyptian border official said he met with Israeli counterparts and heard their concerns about the military presence in Sinai.
Recall from yesterday: "Egypt Prepares To Use Aircraft And Tanks In Sinai For First Time In 40 Years [11]"
While the geopolitical focus is once again all over Iran and Israel, it may be time to take a quick look Egypt, where the recently elected, and pro-US president Mohamed Mursi is "preparing to use aircraft and tanks in Sinai for the first time since the 1973 war with Israel in its offensive against militants in the border area." Reuters continues: "The plans to step up the operation were being finalised by Egypt's newly appointed Defence Minister General Abdel Fattah al-Sisi as he made his first visit to Sinai on Monday following the killing of 16 border guards on August 5. Egypt blamed the attack on Islamist militants and the conflict is an early test for President Mohamed Mursi - elected in June following the overthrow last year of Hosni Mubarak - to prove he can rein in militants on the border with Israel. "Al-Sisi will supervise the putting together of final plans to strike terrorist elements using aircraft and mobile rocket launchers for the first time since the beginning of the operation," an Egyptian security source said. Another security source said the army was planning to attack and besiege al-Halal mountain in central Sinai, using weapons including tanks, where militants were suspected to be hiding." Of course, what can possibly go wrong in the middle east once a government decides to escalate military expansion against militant terrorists. Look for crude to rise ever higher, and for SPR release rumors to hit the tape daily as yet another market is ensnared in price controls ahead of the election.
Sure enough, WTI just broke 200 DMA at is at $97.56, with Brent up over $115, both up about $2 from yesterday.