Iran Threatens To Close Major US Oil Route, 20 Million Barrels at Risk

Middle East’s intricate geopolitics has taken a different turn following Iran’s latest announcement. Iran seems to be moving towards the potential closure of the Strait of Hormuz. This has been lauded as a critical waterway that has been responsible for facilitating the passage of a whopping 20.5 million barrels of petroleum products daily. In addition, it has been serving as a prominent conduit for the global oil trade.

The commander of Iran’s Revolutionary Guard’s navy Alirez Tangsiri went on to issue the warning. This was done in response to perceived threats to Iran’s interests. Several factors such as Israel’s presence in the United Arab Emirates as well as airstrikes on Iran’s consulate in Syria have elevated Tehran’s apprehensions. The latest statement by Tangsiri highlights Iran’s strong stance. It also notes how retaliation is inevitable at this point.

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Strait’s Geopolitical Significance

The Strait of Hormuz is positioned between the Persian Gulf and the Gulf of Oman. It has served as the focal point of Iran’s geopolitical maneuvers and even holds immense importance as a maritime chokepoint. Tangsiri mentions that over 85 oil tankers as well as ships pass through every day. Reports further indicate that an average of around 20.5 million barrels of crude oil, condensate, and oil products passed through Hormuz every day between January and September 2023.

It should also be noted that this isn’t the first time the Strait of Hormuz has made headlines. Back in 2012, during disputes over Iran’s nuclear program as well as international sanctions, the closure of the strait surfaced. The country’s intermittent threats to close this particular strait serve as a means to assert influence while leveraging regional affairs. However, this comes with repercussions. It could pose a risk to the overall global energy markets as well as Iran’s economy.

Closure Highly Unlikely

Speaking about the closure Tangsiri said in an interview with Lebanon’s Al-Mayadeen TV channel,

“If we want, we could close this waterway, but we do not do that… It is because as long as we use this waterway and this strait, our neighbors should use it as well.”

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