Iran Warns Of Closing Strategic Hormuz Oil Route - Spokane, North Idaho News & Weather KHQ.com

Iran Warns Of Closing Strategic Hormuz Oil Route

TEHRAN, Iran (AP) – Iran's navy chief warned Wednesday that his country can easily close the strategic Strait of Hormuz at the mouth of the Persian Gulf, the passageway through which a sixth of the world's oil flows.

In a terse reaction, a statement from the U.S. Navy's 5th fleet says disrupting traffic through the Strait of Hormuz "will not be tolerated."

It was the second such warning in two days. On Tuesday, Vice President Mohamed Reza Rahimi threatened to close the strait, cutting off oil exports, if the West imposes sanctions on Iran's oil shipments.

"Closing the Strait of Hormuz is very easy for Iranian naval forces," Adm. Habibollah Sayyari told state-run Press TV. "Iran has comprehensive control over the strategic waterway," the navy chief said.

The threats underline Iranian concern that the West is about to impose new sanctions that could target Tehran's vital oil industry and exports.

Western nations are growing increasingly impatient with Iran over its nuclear program. The U.S. and its allies have accused Iran of using its civilian nuclear program as a cover to develop nuclear weapons. Iran has denied the charges, saying its program is geared toward generating electricity and producing medical radioisotopes to treat cancer patients.

Congress has passed a bill banning dealings with the Iran Central Bank, and President Obama has said he will sign it despite his misgivings. Critics warn it could impose hardships on U.S. allies and drive up oil prices.

The bill could impose penalties on foreign firms that do business with Iran's central bank. European and Asian nations import Iranian oil and use its central bank for the transactions.

With concern growing over a possible drop-off in Iranian oil supplies, a senior Saudi oil official said Gulf Arab nations are ready to step in if necessary and offset any potential loss of Iranian crude in the world markets.

Reflecting unease over the rising tensions, the U.S. benchmark crude futures contract for February delivery was above $101 per barrel in electronic trading on the New York Mercantile Exchange. Its London-based Brent counterpart fell slightly, but still remained above $109 per barrel on the ICE Futures exchange.

Iran is the world's fourth-largest oil producer, with an output of about 4 million barrels of oil a day. It relies on oil exports for about 80 percent of its public revenues.

Iran has adopted an aggressive military posture in recent months in response to increasing threats from the U.S. and Israel that they may take military action to stop Iran's nuclear program.

The navy is in the midst of a 10-day drill in international waters near the strategic oil route. The exercises began Saturday and involve submarines, missile drills, torpedoes and drones. The war games cover a 1,250-mile (2,000-kilometer) stretch of sea off the Strait of Hormuz, northern parts of the Indian Ocean and into the Gulf of Aden near the entrance to the Red Sea as a show of strength and could bring Iranian ships into proximity with U.S. Navy vessels in the area. click here to read more

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