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Iran threatens to shut Strait of Hormuz if Iranian boycott bites

IRANIAN President Hassan Rouhani says that Iran could disrupt the flow of oil from the Gulf, while an Iranian Revolutionary Guard commander explicitly stated; 'If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz

Iran threatens to shut Strait of Hormuz if Iranian boycott bites
16 July 2018 - 19:06

IRANIAN President Hassan Rouhani says that Iran could disrupt the flow of oil from the Gulf, while an Iranian Revolutionary Guard commander explicitly stated; 'If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz.'

Such a disruption would result in a monumental shift in oil transportation markets, McQuilling Services said in a blog, reports London's Tanker Operator



One third of global crude exports would be removed from the market, sending crude prices well over US$100 per barrel into uncharted territory.



Worldwide refiners will look to alternative regions for feedstock requirements after severe drawdowns of existing inventories.



This would result in a significant fall in tanker demand as Arabian Gulf tanker exports account for well over five trillion tonne/miles annually, McQuilling concluded.



Meanwhile, US President Donald Trump has criticised OPEC for the recent rise in fuel prices, claiming that the US pays for defence for many of the groups' members.



As a result, OPEC should make an effort to increase crude supply to pressure global pricing, he said.



The closing of the Straits has been threatened many times before, especially during the two Israel/Arab conflicts in the 1960s and 1970s.



This resulted in the shutting of the Suez Canal and the Shatt el Arab, plus the Iran/Iraq war in the 1980s when tankers ran the gauntlet of missile attacks when shuttling crude from Kharg Island to Hormuz Island.

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