Iran to 'block' Gulf oil if sanctions proceed

No oil will be allowed to pass through the Strait of Hormuz if the West applies sanctions on Iran's oil exports, Iranian Vice-President Mohammad Reza Rahimi has warned.
The threat was reported on Tuesday by the state news agency IRNA as Iran conducted its fourth day of naval drills near the Strait of Hormuz, at the entrance to the oil-rich Gulf."If sanctions are adopted against Iranian oil, not a drop of oil will pass through the Strait of Hormuz," Rahimi was quoted as saying."We have no desire for hostilities or violence ... but the West doesn't want to go back on its plan" to impose sanctions, he said. "The enemies will only drop their plots when we put them back in their place."The threat underlined Iran's readiness to target the narrow stretch of water along its Gulf coast if it is attacked or economically strangled by Western sanctions.More than one-third of the world's tanker-borne oil passes through the Strait of Hormuz. The US maintains a navy presence in the Gulf in large part to ensure that passage remains free.

WAR GAMES
Iranian ships and aircraft dropped mines in the sea on Tuesday as part of the drill, according to a navy spokesman.Although Iranian war games occur periodically, the timing of these is seen as a show of strength as the US and Europe prepare to impose further sanctions on Iran's oil and financial sectors.The last round of sanctions, announced in November, triggered a pro-government protest in front of the British embassy in Tehran during which Basij militia members overran the mission and ransacked it. London closed the embassy as a result and ordered Iran's mission in Britain shut as well. Tehran in September rejected Washington's call for a military hotline between the capitals to defuse any "miscalculations" that could occur between their military forces in the Gulf.
An Iranian legislator's comments last week that the navy exercises would block the Strait of Hormuz briefly sent oil prices soaring before that was denied by the government.While the foreign ministry said such drastic action was "not on the agenda", it reiterated Iran's threat of "reactions" if the current tensions with the West spilled over into open confrontation.

SANCTIONS INTRIGUE
Ministers said on December 1 that a decision on further sanctions would be taken no later than their January meeting but left open the idea of an embargo on Iranian oil. Countries in the 27-member EU receive 450,000 barrels per day of Iranian oil, about 18 per cent of the country's exports, much of which go to China and India. China, the biggest buyer of Iranian crude, has warned against "emotionally charged actions" that might aggravate tension in the nuclear standoff with Iran. Russia for its part has warned against "cranking up a spiral of tension", saying this would undermine the chances of Iran co-operating with efforts to ensure it does not build atom bombs. Most of the crude exported from Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq - together with nearly all the liquefied natural gas from lead exporter Qatar - must slip through the 6.4km-wide shipping channel between Oman and Iran. Some analysts say Iran would think hard about sealing off the Strait since it could suffer just as much economically as Western crude importers.
SAUDI STEPS IN
Industry sources said on Tuesday that top oil exporter Saudi Arabia and other Gulf OPEC states were ready to replace Iranian oil if further sanctions halt Iranian crude exports to Europe. Iranian Oil Minister Rostam Qasemi had said that Saudi Arabia had promised not to replace Iranian crude if sanctions were imposed.
"No promise was made to Iran, its very unlikely that Saudi Arabia would not fill a demand gap if sanctions are placed," an industry source familiar with the matter told the Reuters news agency." If the sanctions take place, the price of oil in Europe would increase and Saudi and other Gulf countries would start selling there to fill the gap and also benefit from the higher price," said a second industry source.
Brent crude oil futures jumped nearly a dollar to over $109 a barrel after the Iranian threat, but a Gulf OPEC delegate said the effect could be temporary.
www.aljazeera.com...
Comment: Russia and China big trade partners of Tehran have blocked such a move at the United Nations. Iran has also hinted it could hit Israel and U.S. interests in the Gulf in response to any military strike on its nuclear installations. Industry sources said on Tuesday tha the leading exporter of oil Saudi Arabia, and other Gulf OPEC states were ready to replace Iranian oil if further sanctions halt Iranian crude exports to Europe however, Iranian Oil Minister Rostam Qasemi said “ Saudi Arabia had promised not to replace Iranian crude if sanctions were imposed. An industry source familiar with the matter said “No promise was made to Iran, it’s very unlikely that Saudi Arabia would not fill a demand gap if sanctions are placed,” if Iran did manage to shut down the Strait of Hormuz, the ensuing spike in oil prices would have a devastating effect on the global economy, if this occurs, one would surmise that the United States would likely step in. Carl Larry, president of Oil Outlooks in New York said “The U.S. will probably not allow Iran to close the Strait. That’s a major economic thoroughfare and not just for oil. You shut that Strait and we are talking a major hit on many Middle East economies.”

This has been posted quite a few times before... but might as well comment i suppose.

It'd be a bad idea for Iran, as most people seem to think it'd encourage Western/NATO action against Iran as they bring on a new recession from the hike of oil prices. Not only would it be doomed to fail, but Iran would probably lose most of its Navy in one go, due to it being concentrated in such a localised area, which would enable the West to put Aircraft Carriers and Subs into the Straight of Hormuz.

Originally posted by MahmoudAhmadinejad
This has been posted quite a few times before... but might as well comment i suppose.

It'd be a bad idea for Iran, as most people seem to think it'd encourage Western/NATO action against Iran as they bring on a new recession from the hike of oil prices. Not only would it be doomed to fail, but Iran would probably lose most of its Navy in one go, due to it being concentrated in such a localised area, which would enable the West to put Aircraft Carriers and Subs into the Straight of Hormuz.

ok sorry didnt mean to beat a dead horse..but as I see it.. Iran's navy is not much to worry about anyway.. primitive to say the least

As a result, gas here in my town went up .15 over night.

The unfortunate economical reality is that we won't allow Iran to dictate policy or adversely influence the price of gas, so, hello war....IMHO.

Originally posted by ctdannyd
As a result, gas here in my town went up .15 over night.

The unfortunate economical reality is that we won't allow Iran to dictate policy or adversely influence the price of gas, so, hello war....IMHO.

Not to worry (except about the gasoline increases that our companies like to impose at the slightest reason). That is typical Mid-Eastern bluster. They know damned good and well that move would get themselves bombed back to pre-nuke days if nothing else. --And I'm not strongly against them or their ambitions. I would like to see a peaceful co-existence. Let us hope they are not boxing themselves in. Ultimatums are extreme dangers self-made traps.

So will iran attempt to follow through with there threat after this............


EU Iran sanctions: Envoys 'agree' Iran oil imports ban

European Union ambassadors have agreed the details of an oil embargo against Iran over its nuclear programme, diplomats say. The measures are expected to be officially approved by EU foreign ministers meeting in Brussels later. The envoys have reportedly agreed an immediate ban on all new oil contracts with Iran, while existing contracts will be honoured until 1 July. The EU currently buys around 20% of Iran's oil exports. Tehran denies that it is trying to develop nuclear weapons and says talks and not sanctions are the only way to resolve the dispute. Meanwhile, the Pentagon said the US aircraft carrier USS Abraham Lincoln, as well as a British Royal Navy frigate and a French warship, have passed through the Straits of Hormuz at the entrance to the Gulf without incident in the wake of Iranian threats to block the trade route.

full story: www.bbc.co.uk...