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No US-Iranian Incident In Persian Gulf – US Officials January 18, 2007

Posted by notapundit in US News.
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LONDON (Dow Jones)–U.S. naval officials said Thursday no incident or clash has occurred between U.S. and Iranian ships in the Persian Gulf following market speculation earlier in the day.

“All of our ships in (the Middle East) region have checked in and reported no incidents,” a U.S. Naval official in Bahrain told Dow Jones Newswires.

Another U.S. Navy official in Naples, Italy, also said no altercations had been reported. “We’ve heard nor seen anything to substantiate this rumor.”

The U.S. deployed a second aircraft carrier to the Persian Gulf region earlier this week in response to Iran’s perceived aggressive posture in the region.

The Treasury market spiked briefly Thursday as speculation spread about an incident in the gulf but later receded to earlier trading levels.

Nymex crude prices shaved slight losses in response to the speculation before later tumbling $2 a barrel to a fresh 20-month low of $50.05 a barrel for the spot February contract on the New York Mercantile Exchange.

By Spencer Swartz, Dow Jones Newswires

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