US believes Israel response on Iran will be measured enough to avoid escalation

• US official believe Israel’s retaliation will be measured enough to avoid triggering new rounds of escalation
• One official said Israel wants to send a strong signal to Iran while hoping to put a lid on the conflict
• No final decisions had been made by Israel
• Washington did not expect to participate in strikes
• There is growing concern among US allies that Washington is struggling to influence the Israeli government led by Netanyahu
• One European diplomat said Israel has been asked to stop short of an attack on Iran’s oil or nuclear infrastructure but there was no guarantee they would comply

This, to me, is a pretty strong signal to take some profit on oil longs. Crude is up $6 since Iran’s attack.

This article was written by Adam Button at www.forexlive.com.