On 3 July 2018, the Iranian President, Sheikh Hassan Rohani warned that Tehran would close the Strait of Hormuz to oil traffic from the Persian Gulf if the USA renews sanctions against the Islamic Republic.
Iran’s Revolutionary Guard Corps also declared that either the whole world can use the Strait of Hormuz or nobody ships oil out of the Persian Gulf.
US Secretary of State and former CIA-boss, Mike Pompeo stressed that Tehran “should know that America is committed to keeping sea lines open in order to keep oil available for the entire world”.
Then on 5 July 2018, the Commander-in-Chief of the Guardian of the Iranian Revolution, Mohammed Ali Jafari, declared that he was all set to block the Strait of Hormuz.
Back on May 8, 2018, US President Donald Trump announced the US’s withdrawal from the 2015 Iran nuclear deal, also known as the Joint Comprehensive Plan of Action, vowing to re-impose anti-Iranian sanctions.
Washington made it clear that the companies doing business with Iran should wrap up any deals with the Islamic Republic or they would be subject to sanctions as well.
While US sanctions against Iran on the sale and purchase of metal, currency, debt and the production of automobile products will be entered into force on August 7, 2018, sanctions on the banking and oil sectors will apply after November 4, 2018.
In order to protect its businesses, the European Union has vowed to fight back and warned it would revive “blocking regulations” that were originally created in 1996 to protect European companies doing business with Libya and Cuba from US sanctions.
The tactic proved effective at the time forcing the USA to back down from imposing sanctions. Now, Iran had already brought up the possibility of blocking the Strait of Hormuz in 2012.
Today, at least 30% of global hydrocarbon exports cross the Strait of Hormuz into Europe and Asia. During the mandate of George Bush (Son), the Pentagon maintained two aircraft carriers permanently in the Persian Gulf. Now there are none.
The US Fifth Fleet based in Bahrain is charged with guaranteeing free movement in the Gulf, applying the Carter Doctrine, according to which US access to hydrocarbons in the Persian Gulf, is an issue of national security.
Voltaire Network Organization / ABC Flash Point Oil News 2018.