New Explosions!

A loud explosion rocked my Bangkok hotel last night.

My immediate thought: A terrorist attack.

So I hurriedly called the front desk, and they told me not to worry. Everythings fine, they said. It was just the gas tank in a taxi that blew up.

But I was curious, and I headed downstairs. Sure enough, the culprit was a taxi driver that had jury-rigged an extra gas tank in the trunk of his car.

This was nothing new to me. I started seeing these funky gas tanks a couple of years ago, and theyre now all over Asia.

Initially, it wasnt so widespread. Independent cabbies were installing the extra tanks to increase their driving range and reduce the time lost in refueling.

But now a lot more people are doing it and for another reason: To buy as much gas as possible before prices go higher. And, like in the U.S., thats something which is happening practically every day.

In a word, its hoarding. And soon, I suspect youll see the next phase: Long lines of cars at gas stations all over the globe as the energy crisis starts to go full tilt.

The Energy Crisis Is Here.
Its Happening. And Its
Going to Get Much Worse.

Oil retreated a bit more yesterday in a continuing response to President Bushs attempts to hold it down. But at $72 per barrel, oil is still sitting firmly above its post-Katrina highs.

Moreover, the gold market which was up over $7 yesterday is giving you a clearer view of the big-picture direction for all natural resources, including oil: Theyre headed much higher.

Crude oil is headed for over $100. The price of gas at the pump could hit near $5 a gallon later this year.

Indeed, never in my lifetime have I seen so many powerful forces converging to send crude oil prices through the roof:

The greatest demand the world has ever seen …
The tightest supplies ever, and …
Most urgently, the geopolitics of oil, now sizzling in a frying pan. So lets take a closer look …

Iran Rejects U.N. Deadline!

Back in January of this year when hardly anyone was paying attention, I predicted war with Iran. Today, we are approaching the precipice of exactly that a no-win diplomatic stalemate that Im afraid will end up in war.

This week, Irans President Mahmoud Ahmadinejad …

rejected a U.N. deadline to cease their nuclear enrichment activities …
flatly warned Iran would say good-bye to the Nuclear Non-Proliferation Treaty, and, to add insult to injury …
Reiterated his threat that Israel should be wiped off the map.

Then, just yesterday, Iranian Oil Minister Kazem Vaziri-Hamaneh issued another warning about a surprise hike in oil prices if the United Nations slaps sanctions against Iran.

He specifically told the Wall Street Journal that possible sanctions would result in a stoppage of Iranian efforts to mine their national oil, and that the production at existing oil reservoirs has already slowed down.

Im not surprised. In fact, for months Ive been writing that the lunatic running Iran would refuse to back down from developing its nuclear program. He wants the power, the prestige, and the potential destruction capability that enriched uranium can give them. Plus …

Ahmadinejad wants the division of Iraq … the demise of Israel … the domination of the Mid-East … and most importantly, first dibs on as much oil as he can lay his hands on.

He knows the U.S. is mired down in Iraq and Afghanistan. He knows U.S. domestic support for Bush is declining. Plus, hes fully aware that the U.S. is a handy, external scapegoat to help distract his own population from the pitiful economic conditions theyre enduring.

Ahmadinejad figures he has nothing to lose and everything to gain. His country has already suffered the longest conventional war of the 20th century. Nows he sees a chance to unite the country with a rallying cry against the West.

His own words:

Why should we suspend our nuclear program? Those who are saying we should suspend should give us a rational answer. Iran, which is unwavering on its nuclear program, will take another look at its position on the nuclear Non-Proliferation treaty if the UN nuclear watchdog doesnt respect the countrys rights.

And its not just rhetoric.

Iran has already stopped permitting the U.N. nuclear watchdog from using advanced inspection methods, according to the Washington-based Institute for Science and International Security. Thats a big step in the wrong direction.

The U.N.s International Atomic Energy Agency has demanded that Iran suspend its nuclear program by tomorrow, Friday, April 28. But thats simply not going to happen.

In response, the U.S. wants a binding resolution under Chapter 7 of the U.N. charter. That means interruption of economic relations, the severance of diplomatic relations and, if needed, use of armed force. That may not happen either.

But to retain even a modicum of credibility, the U.N. must respond to Iran in some way, and I expect the response will be some form of sanctions.

The precise timing is uncertain. But a few days, or at most, a few weeks after the U.N. meeting, reality will hit the worlds financial markets:

The West is on a collision course with war against Iran.
And consequently, oil will be at $100 per barrel, or more.

Meanwhile …

Venezuelas Hugo Chavez Is
Proposing to Effectively
Nationalize Intl Oil Assets

In my Real Wealth Report, Ive warned about left-wing Venezuelan President Hugo Chavez and his obsession to blackmail the global marketplace with oil.

But when I saw what hes planning to do now, I nearly fell out of my chair.

The Venezuelan Congress made up almost entirely of Chavezs cronies is seriously considering slamming foreign oil companies with big increases in taxes and royalties. That move could push international oil majors to leave the country … reduce the countrys oil production … put still more pressure on global supplies … and drive oil prices even higher.

The big problem: The new royalties and taxes would hit companies operating in the Orinoco River basin, Venezuelas richest oil fields.

And were not talking about gradual increases: Chavez plans to jack up royalties to a whopping 30% from 17%. Meanwhile, he also wants to raise taxes to a mind-boggling 50% from 34%. Shocking!

And Venezuela is no small player. Its the worlds fifth-largest oil exporter, holds the worlds biggest oil reserves outside the Middle East, and is the number three supplier of crude oil to the U.S.

Result: Chavez could put a second strangle hold on global oil supplies.

But thats not all …

Chavez who has always said he wants more state control of the economy also wants to seize majority control of four of Venezuelas biggest oil deposits. Then, he wants to force the private companies currently running them to accept a minority stake.

I dont know about you, but to me that sounds like a wholesale nationalization of Venezuelas oil industry is just around the corner.

In fact, if Chavez gets his way, the countrys public and privately managed oil fields could soon be the property of the Venezuelan government.

Suddenly the world will realize that its now got still another lunatic running another oil-rich country.

My recommendation. Protect your nest-egg. And certainly dont expose it to investments that are vulnerable to rising energy prices, such as auto stocks, or airline stocks. Plus,

Make Hay as Long as
You Can. Heres how …

First, if youre getting my Real Wealth Report, make sure youre on board with energy recommendations. They include …

A uranium company (up 40% in three months)
An energy trust with a healthy 11% royalty payout, plus the chance for capital appreciation
Eleven more energy-related stocks, with current open gains ranging from 2% to 61%

If on board, hold all these shares. I think theyre headed much higher. If not, subscribe and download my Real Wealth Report. The build-up of events has reached a critical stage. You dont have much time.

Second, use corrections to continue adding in the natural resource sector as a whole. As Ive been warning you, virtually all commodity prices are now entering phase II of their rocket rides higher.

Youve already seen record all-time highs in copper. Gold has hit as high as $648 … platinum surged to nearly $1,200 … even silver is flying. And now, other natural resources are taking off as well. The price of sugar, for example, has doubled in the last year!

Important: Because many natural resource prices and related stocks have recently experienced very explosive run-ups, dont be alarmed when you see sudden corrections. Thats natural as large investors and hedge funds take profits. Use these pullbacks as buying opportunities.

As of Mondays closing prices, the open positions in the Real Wealth portfolios are up $24,961. Add all positions closed since inception, and youre talking another $16,207 in gains before broker commissions.

Total gains (losers included): $41,168, or over 400 times the cost of the yearly subscription.

Third, if you have funds you can afford to invest more aggressively, goose those profits up several more notches with high-powered, limited-risk investments in oil shares.

Im talking about effectively controlling $193,000 worth of select oil shares for just 3.2 cents on the dollar.

Your risk of loss: Strictly limited to your modest investment. Never a penny more. Your profit potential: Nearly $40,000.

For more details, call 877-719-3477.

Warning: Sean just sold out his second service on Monday. And now, with everything thats happening, it looks like mine focusing on these high-leveraged oil strategies will sell out quickly as well. So if youre interested, and you want to avoid a waiting list, I suggest you call promptly.

Best wishes,

Larry Edelson
Editor, Real Wealth Report

For more information and archived issues, visit http://legacy.weissinc.com.

About MONEY AND MARKETS

MONEY AND MARKETS (MAM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Larry Edelson, Tony Sagami and other contributors. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MAM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MAM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Contributors include Jennifer Moran, John Burke, Beth Cain, Red Morgan, Ekaterina Evseeva, Amber Dakar, Michael Larson, Monica Lewman-Garcia, Julie Trudeau and others.

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