Iran Threatens Again to Close Strait of Hormuz

The agreement reached by the European Union to impose new sanctions on Iran and its oil exports have ratcheted up the rhetoric, if not also the possibility, that the Islamic Republic would close the Strait of Hormuz. About 15%-20% of the world’s supply of crude passes through the Strait every day.

Iran has also said that it would conduct another round of naval war games in February in another move seen as a threat to traffic through the Strait.

In addition to placing an embargo on future oil purchases from Iran, the US and the EU have agreed to freeze Iranian assets in foreign banks and to make it impossible for Iran to collect payments for its oil shipments.