Wednesday, while most Americans were otherwise preoccupied with the Independence Day holiday, Iranian President Hassan Rouhani threatened an open act of war against his neighbors:
“The Americans have claimed they want to completely stop Iran’s oil exports. They don’t understand the meaning of this statement, because it has no meaning for Iranian oil not to be exported, while the region’s oil is exported. The Americans say they want to reduce Iranian oil exports to zero… It shows they have not thought about its consequences.”
In other words if the U.S. cuts off all Iranian oil exports, Iran will blockade the Strait of Hormuz, through which a large amount of the world’s oil exports flow. And just to confirm that’s what his president meant, the head of the Islamic Revolutionary Guard Corps Quds Force Commander Maj. Gen. Qassem Soleimani replied:
“I kiss your hand for expressing such wise and timely comments, and I am at your service to implement any policy that serves the Islamic Republic.”
In 1990, during the First Gulf War, Iraq’s invasion of Kuwait stopped about 6 or 7 percent of the world’s oil production, causing the price of oil to more than double. Blocking the Strait of Hormuz could potentially cause approximately four times the disruption.
In the meantime President Donald Trump appears to have successfully lobbied other oil producing countries—most notably, Saudi Arabia—to increase output to offset Iran’s impact. But even at maximum output, OPEC could not fully make up for a blockade of the Strait of Hormuz.
Navy Capt. Bill Urban, spokesman for the Pentagon’s Central Command, told reporters later in the day Wednesday that the Navy and regional U.S. allies “stand ready to ensure the freedom of navigation and the free flow of commerce wherever international law allows.” The U.S. conducted similar “freedom of navigation” patrols in the Persian Gulf in the lead-up to the 1990 war with Iraq.
Full article: Iran Threatens Gulf Oil Producers (TruNews)