The Iran-Israeli War of 2008 has yet to begin, but its onset has come a step closer with reports coming from several Israeli news agencies that IAF planes have been practicing in Iraqi airspace.

According to Iraqi Ministry of Defense officials, Israeli warplanes have been coming through Jordanian airspace and conducting exercises from several US military posts including al-Assad airbase outside Haditha, Iraq. The officials also suggested that the practice runs were for a potential strike on Iranian nuclear reactors.

The endless tension over a possible conflict has been a key factor in the rising price of oil. The new reports Friday of Israeli planes in Iraqi sent the price up $5 to over $147 per barrel.

Last month, Israeli planes conducted a massive exercise over the Mediterranean, traveling an equal distance to what it would take to reach Iran, practicing refueling and rescue maneuvers. Some reports suggested it was a “dress rehearsal” for an attack on Iran, but the new Iraqi reports would put them much closer to their target.

Posturing and speculation has been mounting for months—even years considering Iran’s “Axis of Evil” designation—about a new Iranian war. Iran President Ahmadinejad has threatened the complete destruction of Israel countless times. Israeli officials have said time is running out to attack Iran. And in the middle is the United States, pushing sanctions on Iran, but only quietly contemplating war.

An Iran-Israel war could not happen without the green light of the United States. Israeli planes would need to cross Turkish, Saudi, or Iraqi airspace—and the first two are not likely to agree. If Iran chooses to strike first, Secretary Rice said yesterday that the US would defend Israel.

Iranian reports have recently claimed that any attack on its soil would result in attacks on Israel and American military bases in the region. Thus, allowing Israel to strike Iran would not be a passive move by the US military, and it would complicate the Presidential election.