U.S. warns Iran on oil route threat

[Joshua Farrell]

The US Navy has said it will not tolerate disruption to a vital oil-trade route, following an Iranian threat to close it.

Iran warned it would shut the Strait of Hormuz if the West imposed more sanctions over its nuclear programme.

Reacting to Iran's warning, a US Fifth Fleet spokeswoman said it was "always ready to counter malevolent actions".

The Strait of Hormuz links the Gulf - and the oil-producing states of Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates (UAE) - to the Indian Ocean. About 40% of the world's tanker-borne oil passes through it.

http://www.bbc.co.uk/news/world-middle-east-16348633

I am waiting to see if this makes fuel prices go up or not. Having one route that provides a good amount of fuel cut off, will increase prices at the pump no doubt.

 

[Caedus]

Iran has told the U.S today to basically "sit down, shut up and accept that we are going to block the route".

The prices will definatly go up, no matter what. The oil companies will see this as an opportunity to raise prices again, no matter if they are actually effected or not.

 

[Shahrier]

Damn.. I hope this doesn't affect Canada ;x

 

[IAAM Radio]

The futures Markets have already priced in the threat but their is still money to be made on the long play of a direct equity.

 

[koz]

This is only going to hurt Iran's economy. Iran needs to sell oil in order to support their people.