In response to new sanctions and threats of an oil boycott over the country’s nuclear program, Iran is making ominous noises about closing the Strait of Hormuz. As the entrance to the Persian Gulf, it’s the gateway through which about a fifth of the world’s oil flows. According to the New York Times, VP Mohammad-Reza Rahimi recently promised, “If they impose sanctions on Iran’s oil exports, then even one drop of oil cannot flow from the Strait of Hormuz.” It’s certainly an alarming prospect, but the Washington Post downplays the risk. Such a move would cut off Iran’s shipments to China, as well, and the economic risk is simply too great.
Wednesday, December 28, 2011