Iran Threatens To Lock Down Oil Supply Amid Talk Of Sanctions
December 29, 2011 by Sam Rolley
Iranian leaders said Tuesday that if the United States imposes sanctions being set up against their country, it will cut off all oil shipments through the Strait of Hormuz, a vital supply route through which one-fifth of the worldâ€™s oil supply is shipped.
According to The New York Times, the declaration was made by Iranian First Vice President Mohammad-Reza Rahimi, as President Barrack Obama prepares to sign legislation that could substantially reduce Iranâ€™s oil revenue to keep the country from pursuing a nuclear weapons program.
The Obama Administration has been working in recent months to put in place a plan to cut off Iran from global energy markets without risking higher fuel prices. The Iranian economy is already weak, and oil exports account for much of the countryâ€™s revenues so Iranian officials are worried about the sanctions.
â€śIf they impose sanctions on Iranâ€™s oil exports, then even one drop of oil cannot flow from the Strait of Hormuz,â€ť Rahimi said, according to Iranâ€™s official news agency.
The White House said that the disruption would not be tolerated there is talk that the Obama Administration is working on a plan to keep the supply route open in the event of crisis. Some officials speculate that the latest sanctions are setting the stage for violent confrontation between the United States and Iran.