phil flynn lives and breathe the market action. with bob iaccino, chief market strategist live from the cme pits. bob, start with you. we saw gains today. what propelled them? >> today you're looking at a situation there was lot of short-covering after selling from last day or so. people talk about friday moves. it is considering what happens in iraq and how it could escalate over the weekend, i don't see everyone holding position. you heard a bell at new york stock exchange. i heard a bid behind me. that is continuing to the close. adam: we'll talk about iraq and talk about oil quite a bit because it is important. i want to go to tim reali want . volume was light even though we closed up on the dow. a lot of people take this as sigh of relief. is it time for sigh of relief? you think the second half will be much harder on equities, don't you? liz: tim? >> adam, was it directed, yeah, i think it is the reality we pushed the envelope on valuation in a lot of asset classes. we're primarily focused on leveraged finance game as it rela

phil flynn with price futures group. heritage chief economist steve moore is with me. a lot is breaking in the last couple of hours particularly with the situation in iraq. a few things happening, the iraqi government is pleading for help. mostly from the u.s. they're asking us for help to try and stop the latest flare-up of this violence. cities in the northern part of iraq have been completely overtaken by the islamic state in iraq and syria or isis for short. this is al qaeda in iraq under a new name, they are incredibly strong from what we're hearing on the ground. the white house seems to be formulating a response, president obama said he won't rule anything out, but we're told, boots on the ground, off the table for right now. and this deteriorating situation sending shockwaves through the market. oil prices hitting a nine month high, stocks plunging on heavy volume. we lost 109 points on the dow. let's bring in the experts in all of this. jesse, we said 1.7 trillion dollars on this war, and we're about to lose, jesse, iraq? >> absolutely. this is a war supported

guys, stay with me, i want to bring in analyst phil flynn from the cme on this one. phil, what has reaction been like? we saw a little bit after rally in oil prices. i think we have the chart. they went up now because there is more demand? or they're down now. >> it was about the spread between brent and wti. melissa: oh, yeah. >> the oil we're talking about exporting right now is very high quality oil. it is very volatile. and that's what we're talking about. it is called condensate. it is what we're getting outeagleford shale and all these sail deposits. the thing is, what is happening, we're really blurring the line of what crude oil actually is. the stuff that is coming out of the shale is so pure and so volatile that you really can't classify it as traditional crude oil. melissa: yeah. >> that is what the bugaboo is in the story. melissa: the devil is always in the details. james? >> this is a bibby step but hallelujah. this is great news. considering the democratic left that the president has to deal with that he can't go further, but to open markets this way gi

fox business contributor phil flynn joins me from the cme. guys must be watching all this action? >> we are. we're talking about 3.3 million barrels of oil a day that was exported out of iraq last month. it is in jeopardy. this is spreading right now from city to city to city right now. in fact we had a report that turkey, who is on the border with iraq and has had disputes over some of the oil that is coming out of kirkut, which is a city right outside of turkey with iraq asked nate to get involved in the situation. very concerned the way things are developing on the ground. sunni militants are taking over different cities. there are concerns that this could spill over into turkey. the. now the president of iraq has vowed to come back in and take back the cities of mosul right now. seems like soldiers in iraq are running away. right now this is a very fluid situation. it is one that could blow up. one that could really impact oil over the next couple days. melissa: phil, thank you so much. we'll keep an eye on that one. coming soon to a driv

melissa: phil flynn, let me ask you to speak to that directly because you are in the trading pits alle folks say they haven't targeted oil facilities yet so much. i heard k, the mcfarlane saying earlier today that's where the money is, so they're going to be targeting each other's oil facilities. is that a real concern? >> i think it is a real concern. and even if they don't, let's say that iraq can mount a spirited defense, and they can control the southern part of the country. it still reduces their potential to produce be oil in the future. that's why this is so important. it's not just a short-term story that we see a headline come across and we buy oil, then it goes away the next day, this problem could be with us for decades. i mean, the global market was already pricing in that iraq could potentially produce 8-10 million barrels a day, they could be exporting six million or eight million barrels in the future. that's not going to happen. and the murky situation we have right now, we don't know who's going to be running who. iraq could be three country, they could be four countr

phil flynn with price futures group. heritage chief economist steve moore is with me.uple of hours particularly with the situation in iraq. a few things happening, the iraqi government is pleading