LOOKS LIKE FISCHER IS CORRECT

Israel's Transport Minister warned today that unless Iran stops developing nuclear weapons.

Israeli minister: Israel prepared to attack Iran
By AMY TEIBEL – 2 hours ago

JERUSALEM (AP) — Israel will attack Iran if it doesn't abandon its nuclear program, a Cabinet minister hoping to replace embattled Prime Minister Ehud Olmert was quoted Friday as saying.

Shaul Mofaz, a former chief of staff and defense minister, also said Iranian President Mahmoud Ahmadinejad, who has called for Israel's destruction, "will disappear before Israel does," the Yediot Ahronot daily reported.

"If Iran continues its nuclear arms program — we will attack it," he was quoted as saying. "The sanctions aren't effective. There will be no choice but to attack Iran to halt the Iranian nuclear program."

REUTERS adds this:

A spokesman for Prime Minister Ehud Olmert did not address Mofaz's comments directly but said that "all options must remain on the table" and said more could be done to put financial pressure on Tehran.

"Israel believes strongly that while the U.N. sanctions are positive, much more needs to be done to pressure the regime in Tehran to cease its aggressive nuclear program," spokesman Mark Regev said.

"We believe the international community should be considering further tangible steps such as embargoing refined petroleum headed for Iran, sanctions against Iranian businessmen traveling abroad, tightening the pressure on Iranian financial institutions and other such steps," he added.

And if you don't think these remarks made much of an effect, AFP connects them to other issues:

Oil surges to new heights after Israeli warning on Iran
3 hours ago

NEW YORK (AFP) — Crude oil prices went on a record-setting surge Friday as fears of a new Middle East conflict were fanned by comments from a top Israeli official about Iran.

New York's main oil futures contract, light sweet crude for July delivery, leapt 10.75 dollars a barrel -- its biggest one-day jump ever -- to close at a record 138.54 dollars.

Compounding the dollar squeeze were remarks by Israeli Deputy Prime Minister Shaul Mofaz reported Friday by the Yediot Aharonot newspaper, analysts said.

Antoine Halff, an analyst at Newedge Group, said: "The Mofaz comments bring home the point that the dispute over Iran's nuclear program remains unresolved and that the risks of military confrontation are indeed increasing.

"This will likely be a growing source of market volatility until a solution to the dispute is found."