Eco-Living Magazine

Blockade of the Strait of Hormuz Unlikely

Posted on the 30 January 2013 by 2ndgreenrevolution @2ndgreenrev

strait_of_hormuzThis last week, Iran once again brought attention to its contingency plan to close the Strait of Hormuz should hostile action be taken against them. According to Iran’s ambassador, Hassan Danaie-Far, Iran’s reaction to close the Strait doesn’t just hinge on military action on the part of the United States, Israel, or other countries, but includes any other types of pressure from outside countries. Sanctions resulting from Iran’s continuing research to develop nuclear resources, which they claim are merely for energy generation, may prompt the regime to close the Strait.

The Strait of Hormuz is a critical shipping passageway which sees roughly 20 percent of world oil demand pass through it. By blocking the Strait and restricting oil tankers from moving out into the Arabian Sea, Iran would effectively be disrupting the world economy, causing oil prices to spike. Just threatening to close the Strait typically sees increases of $5 to $10 dollars in a day, according to energy analyst Daniel Yergin.

Many energy experts cast doubt in Iran’s actual ability to close the Strait. Not only is the Strait some 30 miles wide, requiring a huge number of ships to close it, but the act of closing the Strait would cause a global reaction. Western countries aren’t the only ones that depend on the oil moving through the Strait. China has also recently become consumers of Persian Gulf oil. The United States and China would both find the blocking of the Strait unacceptable, and cooperative action would surely quickly move to break the blockade. The US Navy’s Fifth Fleet is in charge of maintaining freedom of movement in the area, and could respond with military force at the first moments of blockade.

Finally, according to Yergin, blocking the Strait simply wouldn’t make sense for Iran. Iran exports its own oil through the Strait, which “generates about $80 billion in earnings and about 60 percent of its budget.” With sanctions on Iran already seeing its currency losing 80 percent of its value to the dollar, the ability for Iran to weather the loss of its export earnings does not bode well for a prolonged blockade of world oil resources.

Image URL


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Pros and Cons of Fossil Fuels

    Fossil fuels are used throughout the world to power everything from cars to lights in the home. However, there is currently a lot of hot debate over the use of... Read more

    The 12 July 2015 by   Rinkesh
    ENVIRONMENT
  • Fossil Fuel Industry Must ‘implode’ to Avoid Climate Disaster, Says Top Scientis...

    Originally posted on jpratt27: ‘The age of carbon is over’ and a transition to a greener economy is inevitable, says Hans Joachim Schellnhuber, adviser to the... Read more

    The 11 July 2015 by   Garry Rogers
    ANIMALS & WILDLIFE, BOOKS, ENVIRONMENT
  • Smarter Energy For A Smarter Future

    The face of energy is changing fast. New technology and the deregulation of energy is providing more and better energy solutions and putting more money into... Read more

    The 09 July 2015 by   Rinkesh
    ENVIRONMENT
  • Blizzards: Facts, Effects and Formation

    What is a Blizzard? While snowstorms are a common occurrence in many areas during the winter months, blizzards are a rarer occurrence. Read more

    The 08 July 2015 by   Rinkesh
    ENVIRONMENT
  • Greenhouse Gas Emissions: Sources & Effects

    What are Greenhouse Gases? The term ‘greenhouse gases’ (GHG) refers to a type of gas (and there are a few different gases that this can refer to) that is capabl... Read more

    The 03 July 2015 by   Rinkesh
    ENVIRONMENT
  • Pros and Cons of Genetic Engineering

    ‘Genetic engineering’ is the process to alter the structure and nature of genes in human beings, animals or foods using techniques like molecular cloning and... Read more

    The 02 July 2015 by   Rinkesh
    ENVIRONMENT
  • Is Nuclear Energy Renewable?

    Nuclear energy is the energy that is in the core (nucleus) of an atom. Atoms are small particles which make up the entire universe and everything it holds. Read more

    The 28 June 2015 by   Rinkesh
    ENVIRONMENT

Add a comment