Traders Call Iran's Bluff (USO) (UCO) (DBO) (OIL)

Reports are floating around today that Iran's National Security and Foreign Policy Committee has drafted a bill calling for Iran to try to stop oil tankers from shipping crude through the Strait of Hormuz.

While these are frightening reports, they are really nothing new. Since the breakdown in talks in Moscow, Iran has been jawboning, threatening, and posturing, and the market reaction has been virtually non-existence.

Eventually the market will begin to trade geopolitical concerns again, but today is not that day. If Iran wants higher crude prices, they are going to have to do more than jawbone and make threats. A year ago, threats from Iran might have worked. These days, investors aren’t so easily fooled. Today traders are calling Iran's bluff and Brent is trading down to $96.13. Crude trades at $83.26 and United States Oil ETF (NYSE: USO) is lower by 2 percent.

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