Iran threatens to close vital oil-trade route

Admiral Habibollah Sayari has caused an international dispute by saying Iran could easily close the Strait of Hormuz, with the US Navy saying it will not tolerate disruption to the oil-trade route, it has been reported by the BBC.

The Strait of Hormuz has become a new bargaining chip in the ongoing international dispute over Iran's nuclear weapon programme. The crucial passage links the oil producing states of Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates - to the Indian Ocean. It is estimated that around 40 per cent of the world's tanker-borne oil passes through it.

There is a continuing US naval presence in the Gulf as an assurance of safe oil passage. US spokeswoman Rebecca Rebrich told the BBC that "the free flow of goods and services through the Strait of Hormuz is vital to regional and global prosperity". She added that the US Navy is always ready to 'counter malevolent actions' to ensure that the oil passes through safely.

Vice-president Mohammad Reza Rahimi warned that "not a drop of oil will pass through the Strait of Hormuz" if sanctions are widened.