12 December, 2011

Practicing to block the Straight of Hormuz

Member of the Iranian Parliament says the military was set to practice operations to block the Straight of Hormuz, one of the key choke points for world energy supplies. The Iranian military has not confirmed this, but you can probably expect a rise in oil prices just on the emotional impact of the possibility.

As it is, most of the crude oil and liquefied natural gas of Saudi Arabia, Qatar, Kuwait, Iraq, the Emirates (and Iran) have to pass through the four-mile wide shipping channel, currently patrolled by the U.S. Navy.

UPDATE 1-Iran army declines comment on MP's Hormuz exercise remarks | Energy & Oil | Reuters

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