28 December 2011 23:09 [Source: ICIS news]
HOUSTON (ICIS)--The US on Wednesday warned Iran that no country will be allowed to block the Strait of Hormuz, after an Iranian official threatened to close the shipping route.
The threat was made on Tuesday by Iranian Vice President Mohammad Reza Rahimi, who said the country would close the strait if sanctions were placed on the country’s oil exports, a media report said.
Closing the channel would cut off about a third of all sea-borne oil, and potentially cause a spike in prices because of tight supply, according to media reports.
However, WTI (West Texas Intermediate) and Brent prices fell by $1.98 (€1.52)/bbl and $1.71/bbl, respectively. WTI closed at $99.36/bbl, and Brent closed at $107.56/bbl.
The US Navy responded to Iran’s threats by saying no country would be allowed to block the strait, a media report said.
($1 = €0.77)
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