Iran is prepared to jeopardize the world oil supply completely, if the US imposes the sanctions.
A senior Iranian official said that they are prepared for a sharp threat, by blocking shipments of oil through the Hormuz Strait, in case the economic sanctions are imposed by the US. The strait serves as a vital oil shipping artery across the world to and fro.
The US president Barack Obama is planning to put forth a legislation which would reduce the revenue from oil in Iran substantially thereby curbing the Middle East nation from pursuing its nuclear program. The country seeks to build considerable nuclear weapons.
This is the latest move by the US administration to cut off Iran from the rest of the world in terms of energy markets. Earlier it had attempted to do the same by increasing gasoline prices and alienate closest allies of Washington.
The world’s third largest exported of energy is already trying to run a fearfully stressed out economy, and the imposition of these sanctions would further make matters worse. The Iranian official Rahimi said that if the US imposes sanctions, there would not be a single drop of oil flowing across the Strait of Hormuz. It has already begun a 10 day exercise by the navy.
The US President in recent interviews however said that they too have plans to keep the Strait open in case of a crisis. The president while holidaying this Christmas in Hawaii however refused to make any comments on the issue. Moreover this has also been seen as a smart way of avoiding heated exchange of words.
The energy sanctions if imposed however have the potential of a confrontation in future, considering the fact that Iran always has an unpredictable response system. The threat lead to an increase in oil prices to $100 per barrel. Though it might be attributed to the concerns among investors, nothing can be confirmed.
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