As we’ve been reporting, Iran’s security chief has threatened to halt oil flow out of the Strait of Hormuz, according to state-affiliated Press TV.
Mohsen Rezaei, the secretary of Iran’s Supreme National Security Council, threatened to shut down all traffic through the critical waterway should any neighboring countries enter the US’ expected economic crackdown.
A narrow waterway that bypasses Iran and Oman, the Strait of Hormuz is the main route for shipping crude from oil-rich countries such as Saudi Arabia and Kuwait to the rest of the world.
The strait has remained a major flashpoint since it was effectively closed by Tehran following airstrikes by the US and Israel on February 28.
Iran controls the strait’s northern side. About 20 million barrels of oil, or about one-fifth of daily global production, used to flow through the strait every day, according to the US Energy Information Administration, which calls the channel a “critical oil chokepoint.”
The strait also carries about one-fifth of global trade in liquefied natural gas, largely from Qatar. Some producers, including Saudi Arabia and the United Arab Emirates, have found alternative routes for their exports.
