Iran Renews Threat to Close Strait

Just two weeks ago, the government of Iran sort of threatened to close the Strait of Hormuz, the narrow chokepoint at the mouth of the Persian Gulf. The threat wasn’t taken too seriously because the government walked the threat back.

Today, however, the country’s government-controlled news service, IRNA, cites the Iran’s vice-president as saying the country will close the strait if sanctions are imposed on its crude oil exports. The drive for new sanctions against Iran are the result of the country’s refusal to stop its nuclear research program, which it claims is developing peaceful uses of nuclear energy and the US, France, Britain, and others claim is a program to develop nuclear weapons.

The price of crude is rising, with Brent crude up nearly 1% at $109.10/barrel and WTI crude up about 1.3% at $101/barrel.