Iranian TV is reporting Israeli planes are now in Iraq, preparing for a strike against Iran, according to Reuters.

Both U.S. and Israeli officials have denied these reports.

The source of Iran's information appears to be someone involved with Moqtada al-Sadr, a Shi'ite cleric in Iraq, who has been outspoken against the U.S. military presence in the country. al-Sadr has previously spent time in Iran, and spoken to officials there about forming a government in Iraq similar but separate of the Iranian regime. He's the leading Shi'ite cleric in the country.



Oil spiked in the 9AM hour, when this report first appeared. It has since settled close to $114. Its movement could also be related to suspected instability in the region in the wake of the U.S. military 's killing of Osama bin Laden.



Don't miss: 10 incredible weapons that only America has >





