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Rising tensions between Israel and -- reversing a two weeks fighting global crude prices.
Already the world's fourth largest producer of oil and Israeli Prime Minister Ehud Olmert plans to step down in September.
Stoking fear is that US backed Middle East peace effort for and -- -- there's also concern.
That a new Israeli leader might not be so forgiving when it comes to a -- nuclear ambitions.
Reporter Mike Tobin of our sister network Fox News Channel joins us from Jerusalem -- much more.
On this story so might cat first and foremost why did he decide to step down now particularly given the fact that so money.
Israeli ministers were in negotiations.
With members of -- cabinet.
Well you really yet it got to the point where you need to step down because there which just so much bad press the case against them look to be so solid.
The way the prime minister put it there were just so many people after -- he wanted to step down for the greater good -- Israel however insists that he's innocent.
The allegations against him the most recent ones sit and an American businessman by the -- a businessman by the name of Morse Polanski and handed him -- envelopes full of cash as -- They also allege that he had duplicated his travel expenses use the extra money.
To -- his family around in rather lavish style they got to be so much that he said he just need to step down for the greater good of the country.
You might -- hearing about a lot of different names Ehud Barack Livni right now potentially -- also the Transportation Minister.
What are people saying there in terms of succession plan.
Well if it remains within his party his party will go to primaries on September 17 if it remains within the Kadima Party.
It will either be yet to be Livni or -- -- spots -- -- -- top candidates within his own party.
Very interesting because there's only 60000.
Kadima Party members registered in Israel to somewhere around 30000 people could be -- the new prime minister.
But there's a big if attached to that if that candidate or party chair could assemble lot more than 50% of the -- parliament and ruling coalition.
If the candidate fails to assemble a ruling coalition Israel goes into general elections that's when you start hearing names like Benjamin Netanyahu and Ehud Barack who could come from other parties and take over the prime.
Yet -- out -- we hear about names about -- like Ehud Barack or Netanyahu we also get the sense that tensions with Iran could get a lot worse what are people saying about that.
Well everyone is very concerned about the tensions with Iran -- a lot of dialogue as to whether Israel would go ahead with a unilateral strikes the official party line -- the official Israel line actually I guess I should say across parties.
Is that they want this to be an international problem Israel does not want to go ahead with unilateral strikes.
But you see when -- go ahead and conduct drills over the Mediterranean Sea flying the distance that they would need to go to get to a Iranian targets practicing refueling along the way they certainly want to rattle -- -- and city unilateral strikes against ran our possibility one way or another Israel says they will not allow Iran to go nuclear.
All right Mike Tobin reporting from Israel I thank you so much for joining us to bring us up to date on that story.
Well as we watch the developments in Israel it has had an impact clearly on crude oil prices oil is up nearly five dollars.
From this time yesterday and as we await earnings from three of the world's top oil companies including.
ExxonMobil Royal Dutch Shell and marathon.
-- jitters are back on the front -- in this morning joining us to discuss the Olmert resignation of what this means for the future of oil.
And the Middle East are -- fell on any easy editor of the Middle East times.
-- leave the -- capital management and Phil Flynn vice president of Alaron Trading corporation good morning -- -- let me get started with you.
-- you know we were just might -- about the implications.
For wal mart's decision into resigned his position.
I know the elections are not until September but I imagine there is a lot of nervousness about.
Who may take over and what that might mean for tensions or relationships with Iran.
What do you make of that.
Well who who takes over as the critical question of course if it stays that your correspondent just pointed out within the Kadima Party.
And it's -- there Tzipi Livni or -- mofaz.
It would probably be more of the same policy of -- Ehud Olmert.
If on the other hand he goes to -- Likud and you have someone like Bibi Netanyahu.
-- hawk and we would make no.
Court no qualms about.
Taking a much stronger approach vis a vis Iran and we would not settle for anything last month.
Taking a -- of the nuclear threat that Iran poses 22.
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