GUIDANCE
Why Iran Is Threatening to Close the Strait of Hormuz
Jul 5, 2018 | 21:33 GMT

An Iranian war-boat fires a missile during the 'Velayat-90' navy exercises in the Strait of Hormuz in southern Iran on December 30, 2011. Iran, which has been carrying out war games in the Strait of Hormuz over the past week, has said that 'not a drop of oil' would pass through the strait if Western governments follow through with planned additional sanctions over its nuclear programme. AFP PHOTO/IIPA/ALI MOHAMMADI (Photo credit should read ALI MOHAMMADI/AFP/Getty Images)
(ALI MOHAMMADI/AFP/Getty Images)
Highlights
- Facing the imminent reinstatement of U.S. oil sanctions, Iran is threatening to close the Strait of Hormuz, which would shut down the region's oil trade.
- Iran has made this threat before and has never followed through, since actually shutting down the strait would be a drastic and damaging move for the country.
- The tough rhetoric is more than likely to be followed up by more mild retaliation attempts, such as the harassment of vessels in the Strait of Hormuz.
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