The Asia Times reports that we could see a conflict in the Middle East that would send the price of oil skyrocketing, says Irwin Greenstein, writing for Contrarian Profits.

The article, which carries the headline “Big-Bang Report Blasts Iran,” appears at a time when oil prices dipped below $92 a barrel.

It says that one week ahead of the annual gathering of world leaders at the UN headquarters in New York the International Atomic Energy Agency (IAEA) has issued a new report permeated with “serious concerns” and “outstanding questions” about Iran’s nuclear program.While the IAEA discovered no evidence of military diversion, the report alludes to so-called “alleged studies” that could give impetus to the “Iran Six” multilateral diplomacy involving the U.S, Britain, France, Russia, China and Germany.

According to the Asia Times, these “alleged studies” could lead to stricter sanctions on Iran, or worse, an Israeli or American strike against Iran’s nuclear infrastructure.

Thanks to the global financial crisis the IAEA report got buried. Nevertheless, the implications are truly profound.

The IAEA has revealed a collection of weaponization designs and documents that suggest Iran has tried to develop a nuclear warhead, The IAEA now wants Tehran to separate fact from speculation.

The IAEA and the US see Iran’s refusal to cooperate as a clear sign that the regime refuses to cooperate with the international community.

Since the UN has already imposed three rounds of sanctions against Iran for its ongoing enrichment program, and further US and EU have implemented further sanctions, the next step could involve an all-out bombing of Iran’s nuclear facilities.

Any such action would be devastating global oil markets. But China could be a major casualty as well. It’s Iran’s biggest customer for oil. If China were suddenly cut off from Iranian supply the spot market for oil could reach new highs.

The Bush administration has shown it has an itchy trigger finger – especially when it comes to oil.