Iranian threat

IRANIAN President Hassan Rouhani struck a defiant stance
against US sanctions on Tuesday, renewing his threat to cut off international oil sales from the Gulf. Speaking to a rally, he said America should know it is not capable of preventing sale of Iranian oil and if it ever tried to do so, no oil will be exported from the Persian Gulf.
Iranian threat, if implemented, will have serious consequences for global oil trade and economy of different regions and countries. With a third of the world’s sea-borne oil passing through it every day, the Strait of Hormuz is a strategic artery linking Middle East crude producers to key markets in Asia Pacific, Europe, North America and beyond. Most of the crude exported from Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq passes through it. It is also the route for nearly all the liquefied natural gas (LNG) from lead exporter Qatar and, therefore, one can imagine the implications and consequences of such an eventuality. There are questions whether Iran can effectively block the supply but any attempt to disrupt it is likely to be resisted and responded to by the United States and, therefore, could lead to dangerous escalation in tension. Iran has genuine concern as oil is the major source of revenues for the country and a ban on oil exports means hardships for its people. The worst aspect of the latest sanctions is that these are considered to be uncalled for and unjust by almost the entire international community as Tehran was faithfully implementing its part of the deal with the world powers on its nuclear programme. Instead of pushing Iran to wall, the UN and other influential countries should step forward and help find a negotiated solution of the prevailing tension.

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