Don't look for any drop in oil prices soon -- and keep an eye on the stocks associated with it.
With oil hitting its high for the year and international tensions surrounding Iran and Britain, the effects are bound to be felt in the market, said Jim Cramer in his
Wall St. Confidential video
It's important to remember that only international tension moves oil and that this will soon reignite earnings, Cramer told Greenberg. In fact, it's already igniting earnings in the whole drilling complex.
Iran's recent seizure and capture of 15 British sailors in the Persian Gulf is "genuine tension," Cramer continued, and he is "surprised" oil has hit $65 to $67. He called Iran a "rogue" nation that has been "thumbing its nose at the whole world."
"In keeping with the tradition that was established in 1979 when they overthrew the U.S. embassy, they really believe they can do whatever the heck they want," Cramer said. "I think they are a factor in terms of their ability to start a major war here."
Cramer said he doesn't think oil will go below the $50 range. Somewhere between $53 to $63 sounds right, Cramer said, based on global tensions, Venezuelan President Hugo Chavez's ability to stop the import of mass amounts of oil and the U.S.' inability to produce a lot of oil.
"The ultimate irony is that we, in North America, have dramatically dropped our drilling," he said. "We're not drilling it in the Gulf or in Canada."
In terms of stocks, Cramer said he'd take a look at
, which is above where it was when it was downgraded last week, and
, which he owns for his charitable trust,
Action Alerts PLUS, and which is down a dollar from when it preannounced.
"This shows true resilience," Cramer said. "It was a horrible preannouncement, and the stock is not going down."
At the time of publication, Cramer was long Halliburton.
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