Members of the U.S. Navy Blue Angels fly over the World Trade Center in lower Manhattan as part of the 25th annual Fleet Week celebration in New York, May 23, 2012.  REUTERS/Eduardo Munoz

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Shreen Mohammad sits with other recruits during a military exercise at the Kabul Military Training Center (KMTC) in Kabul March 28, 2012. A landmark NATO summit in Chicago endorsed an exit strategy that calls for handing control of Afghanistan to its own security forces by the middle of next year but left questions unanswered about how to prevent a slide into chaos and a Taliban resurgence after allied troops are gone. Picture taken March 28, 2012.   REUTERS/Omar Sobhani (AFGHANISTAN - Tags: POLITICS MILITARY SOCIETY) ATTENTION EDITORS: PICTURE 18 OF 27 FOR PACKAGE 'AFGHAN ARMY RECRUIT'

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Obama: Harsh U.S. rhetoric on Iran boosting oil

Presumptive Democratic presidential nominee Senator Barack Obama listens to a panelist at the Economic Competitiveness Summit held at Carnegie Mellon University in Pittsburgh, Pennsylvania, June 26, 2008. REUTERS/David DeNoma

Presumptive Democratic presidential nominee Senator Barack Obama listens to a panelist at the Economic Competitiveness Summit held at Carnegie Mellon University in Pittsburgh, Pennsylvania, June 26, 2008.

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ST. LOUIS | Mon Jul 7, 2008 5:33pm EDT

ST. LOUIS (Reuters) - Democratic presidential candidate Barack Obama said on Monday that harsh U.S. rhetoric toward Iran appeared to be contributing to the surge in oil prices and that a calmer approach might help soothe the markets.

Obama was asked in a news conference about some ways that the United States could help reduce the price of oil in the short term.

The Illinois senator listed some of his energy proposals such as a plan to rein in excessive speculation in the energy markets.

"There are some geopolitical issues that affect the price of oil," he added. "So for us to ratchet down the rhetoric when it comes to Iran, for example, and engage in tough, principled diplomacy, as I've called for, might calm the markets down."

(Reporting by Caren Bohan)

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