President Bush called on OPEC nations on Tuesday to put more oil on the world market and warned that increasing prices could cause an economic slowdown in the United States. "High energy prices can damage consuming economies," the president told a small group of reporters traveling with him in the Mideast.
In a stern warning to Iran days after a Jan. 6 confrontation with U.S. warships in the Persian Gulf, Bush put Tehran on notice that it needs to be careful. According to the AP, the American leader said it would not matter to him whether an attack against an American vessel resulted from an order by the government in Iran or a rash decision by an Iranian boat captain.
"It's not going to matter to me one way or another," Bush said. If the Iranians hit a U.S. ship, "there are going to be serious consequences," he said.
The president spoke to reporters before meeting with Saudi King Abdullah, whose country holds the world's largest supply of oil. Bush said U.S. consumers are feeling the pain of rising oil prices, which topped $100 a barrel this month. "When consumers have less purchasing power, it could cause the economy to slow down," Bush said. "I hope OPEC nations put more supply on the market," he added. "It would be helpful."
At the same time, he noted that the higher prices are guided by supply and demand, and that there is little excess capacity in the marketplace.
Bush said that King Abdullah asked him why he was optimistic about securing an agreement before his White House term ends in January 2009. "Part of my mission was to make clear why talks failed in the past. There wasn't participation by the neighbors," Bush said.
According to him, he was convinced that the Arab leaders want to see the creation of a Palestinian state in a peace agreement with Israel. "They definitely want it to happen," he said, "and they questioned the seriousness of the United States to remain involved in what has been a long and frustrating process." "They want to see a deal done," he said. "The issue frustrates them."
Bush said he has faced persistent questions during his trip about a new U.S. intelligence estimate that said Iran had abandoned its nuclear weapons program in 2003. That conclusion contradicted Bush's claim that Iran was pursuing nuclear weapons and raised questions in the Mideast about U.S. intentions toward Iran. The president said he made clear that the new finding was a judgment by independent intelligence agencies and that "all options are on the table for dealing with Iran." At the same time, he said he has told leaders he wants a diplomatic solution.
"These are judgment calls and there are clear rules of engagement," he said. Still, he told the Iranians: "They better be careful. If they hit one of our ships there are going to be serious consequences."
