Wednesday, December 28, 2011

US Will Not 'Tolerate' Disruption of Vital Oil Strait Traffic

Via VOA News -

The U.S. military says it will not tolerate disruptions in Strait of Hormuz traffic as Iran has threatened to block oil shipments coming through the waterway.

A spokeswoman for the Bahrain-based U.S. Fifth Fleet said the flow of goods through the strait is "vital to regional and global prosperity." Lieutenant Rebecca Rebarich said Wednesday the U.S. Navy is ready to "counter malevolent actions" to ensure navigation freedom.

Earlier Wednesday, Iran's top naval officer, Admiral Habibollah Sayyari, said closing the Strait of Hormuz would be "very easy" for his forces, though he added no immediate action was "necessary."

Sayyari is the second Iranian official this week to raise the possibility of closing the entrance to the Persian Gulf in response to Western threats to put sanctions on Iran's petroleum exports because of the country's controversial nuclear program.


Iran's warnings have come as its naval forces continue a 10-day exercise in the strait and nearby waters that began on Saturday.


European Union ministers have said that a decision on further economic sanctions - including a boycott of Iranian oil - would be made in the coming weeks. The vast majority of Iran's foreign revenue comes from oil exports.

More than one-third of the world's tanker-borne oil supply passes through the Strait of Hormuz. A closure could temporarily cut off some oil supplies and force shippers to use longer, more expensive routes.

It could impact the price of oil worldwide. After an initial spike following the Iranian threats, however, oil futures edged lower on Wednesday.

The Associated Press quoted a Saudi oil ministry official as saying Gulf oil producers would be ready to step in, if necessary, to make up for any losses of Iranian crude.

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