In order to understand Iraqis position in the world economy as well as the democratic worlds domestic policies in light of rising energy costs, the question of the causes of rising oil prices needs to be addressed. Upon closer examination, the reasons for rising oil prices are complex and interrelated in some instances. The most recent increases, which began approximately two years ago, were first spurred by the terrorist attacks of September 11, 2001 as well as other acts of terror worldwide. When the United States occ

While the global economy is complex perhaps beyond analysis and comprehension, one thing is quite clear- rising energy prices especially that of oil, places a huge burden on the world and affects almost every area of business and commerce. Therefore, efforts should be made to address this issue in a meaningful way for the good of the entire world.

Rising Oil Prices and the Democratic World

As the situation in Iraq changes on a daily basis, the consideration of what the future holds for Iraq, in terms of energy prices and other factors, is vital to discuss. First, if the current democratic reforms that are being attempted in Iraq take root and thrive over the long term, the nation could return to the center stage of the global oil network, once again significantly contributing to the oil supply and allowing for energy prices to return to the lower levels that the world enjoyed several years ago. Conversely, if Iraq fails to return to tranquility and solvency, the deficit of available oil could keep prices inflated indefinitely, which will put added strain on the global economy, leading to other situations altogether. The clear importance of reform in Iraq, which likely cannot happen without sustained American involvement, is a fair indicator of justification for Americas role in that country at the present time (Weigel, 2006).

The concern over rising oil prices has been cited as the key reason for the United States military occupation of Iraq, despite the Bush administrations claims that the invasion took place as part of a search for weapons of mass destruction. A frightening reality is that the war in Iraq was ignited because of the worldwide effort to base the international oil prices and trading on the Euro as opposed to the American dollar, which would lead to an overall depression of the strength and value of the dollar in world currency markets (Clark, 2003). By taking control of Iraq, one of the major sources of oil on the world market, a disruption in the international oil markets could create enough of a diversion to make the Euro conversion impractical, delaying it over the short term and possibly halting it over the long term. While Iraq is strategically important in the oil supply chain, the obvious question is why the U.S. chose Iraq as its target and not another nation that possesses oil riches but poses less of a threat to the American military. In fairness, it is likely that Iraq became the choice not only because of the oil issues, but also in an effort to attempt to quash global terrorism and send a message to the other terrorist nations that the U.S. would no longer

Some common words found in the essay are:
World Referring, Essentially PSA, Prices Rising, Moreover Cheney, Conversely Iraq, Holds Iraq, China Beck, , United Iraq, United Iraq's, oil prices, rising oil, rising oil prices, foreign policy, iraq's foreign, iraq's foreign policy, energy prices, foreign policy oil, policy oil, oil importing world, importing world, policy oil importing, oil importing, oil supply, supply oil,
Approximate Word count = 1766
Approximate Pages = 7 (250 words per page double spaced)