There appears to be a spot of confusion over in Iraq.
On Friday morning Reuters reported that Iranian troops had entered an Iraqi oil field, news that sent the price of Nymex West Texas Intermediate oil up more than $2 a barrel:
RTRS-IRANIAN TROOPS BRIEFLY ENTERED IRAQI OILFIELD ON THURSDAY — SECURITY SOURCE IN IRAQ’S MAYSAN PROVINCE
Concerns of a conflict brewing in the Middle East were later calmed when Reuters managed to get hold of an Iraqi interior minster who denied all knowledge of an Iranian incursion:
BAGHDAD, Dec 18 (Reuters) – Iraq’s deputy interior minister denied on Friday reports that Iranian troops had crossed into Iraqi territory and briefly occupied an oilfield.
An Iraqi security source in southeastern Maysan province, speaking on condition of anonymity, said that Iranian troops made their way on Thursday onto the Fakka oilfield, located just on the Iraqi side of the two country’s long desert border, then withdrew after several hours.
Iraq’s Deputy Interior Minister Ahmed Ali al-Khafaji said no incursion took place.
Flash forward a couple of hours and Mr Ali al-Khafaji appears to have changed his mind.
Not only had the incursion occurred, but it was merely one of several this week. In fact, some of the Iranian troops were even still there:
BAGHDAD, Dec 18 (Reuters) – Iranian soldiers have crossed into Iraqi territory and taken up position at a southern oilfield whose ownership is disputed by Iran, an Iraqi official said on Friday. Deputy Interior Minister Ahmed Ali al-Khafaji, reversing statements made earlier in the day, said the incursion on Friday was the latest in a series this week.
The rest of the world, and the markets, have been left scratching their heads.
Oil, meanwhile, continues to trade near session highs while the dollar is paring losses against the euro:
Bizarre.