Iran threatens to cut off Gulf oil exports if nuclear facilities are attacked

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Jun 2008

The head of Iran's powerful Revolutionary Guards has threatened to hurt Western economies by cutting off Gulf oil supplies if his country's nuclear facilities are attacked. With speculation growing that Israel or America might strike Iran's nuclear sites, Major General Mohammed Ali Jafari also said Iran would consider launching missiles at the Jewish state and attacking any neighbouring countries that helped American forces. "Naturally every country under attack by an enemy uses all its capacity and opportunities to confront the enemy," said Maj Gen Jafari in the local Jam-e Jam newspaper. "Regarding the main route for exiting energy, Iran will definitely act to impose control on the Persian Gulf and Strait of Hormuz."
About 40 per cent of all world oil exports flow through the 35-mile wide Strait of Hormuz, banked along its northern side by Iran. With world oil supplies already constricted, any Iranian action could push energy prices through the roof.
"After this action, the oil price will rise very considerably and this is among the factors deterring the enemies," said Maj Gen Jafari, whose forces have already installed missiles on the island of Abu Musa in the middle of the strait. Crude oil is now trading for more than $130 a barrel.
Military analysts have often speculated that Iranian sea mines, artillery or rocket attacks could imperil tankers. During the Iran-Iraq war in the eighties, shipping came under attack, forcing the United States to intervene and defend oil supplies.
Although some Iraqi, Kuwaiti and Saudi oil could theoretically be moved across land instead, it would take precious weeks to bring the necessary pipeline into operation, testing the limited reserves held by Western governments in case of emergencies.
Some Western countries believe Iran is using an ostensibly peaceful nuclear programme to try to build an atomic bomb. They accuse it of enriching uranium in underground bunkers not to supply fuel for a nuclear power plant, as Iran says, but to feed a nuclear warhead.
So far, diplomatic attempts to stop Iran enriching uranium have drawn a blank, as the country insists it is allowed to use the process under the nuclear non-proliferation treaty.
As a result, Israeli and American politicians have publicly discussed blowing up Iran's nuclear sites. Last week it was revealed that Israel has even rehearsed air strikes against Iranian facilities in wide-ranging aerial manoeuvres.
"This country [Israel] is completely within the range of the Islamic republic's missiles," said Maj Gen Jafari. "Our missile power and capability are such that the Zionist regime - despite all its abilities - cannot confront it."

Source: Telegraph