Iran may close the Strait of Hormuz to oil traffic from the Persian Gulf if the United States renews sanctions against the Islamic Republic, Reuters has reported, citing an Iranian Revolutionary Guards commander.

“If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz,” Ismail Kowsari, the deputy commander of the Sarallah military base, said.

Earlier, Tehran’s representative at OPEC Hussein Kazempur Ardebili warned that Washington’s effort to block Iranian oil exports would backfire forcing American citizens to pay the price for President Trump’s policy.

On May 8, President Donald Trump fulfilled an election campaign promise to pull out of the landmark 2015 nuclear deal agreed between Iran and world powers, that imposed strict curbs on Tehran's nuclear program in exchange for the loosening of economic sanctions.

President Trump promised to re-impose sanctions on Tehran and add new ones.

Washington also notified the world that companies doing business with Iran should wind down any deals with the country or they would be subject to sanctions as well.

READ MORE: Rouhani Expects EU to 'Fill In' for US in Iran Nuclear Deal

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 United States to back down from imposing sanctions. </s> Tehran will close the Strait of Hormuz, effectively blocking all the oil shipments from the Persian Gulf if Washington succeeds in its attempts to reduce Iranian oil exports, an Iranian Revolutionary Guards commander said.Esmail Kowsari, a deputy commander of the Revolutionary Guards' Sarollah base in Tehran told the Iranian Young Journalists Club, which is linked to the national broadcaster controlled by the supreme leader, Ayatollah Ali Khamenei."If Iran's oil exports are [stopped], we will not give permission for oil to be exported to the world through the Strait of Hormuz," Kowsari said, as cited by Bloomberg.The US and Iran have been trading veiled threats for quite some time now. On Wednesday, theSome international media then promptly attributed the remark to a possible closure of the Strait of Hormuz.A spokesman for US Central Command (Centcom), Captain Bill Urban, responded by saying thatThe latest escalation of tensions was actuallywho said on Monday that Washington's goal is toThe US has already been calling on its allies to stop importing Iranian oil by November 4, or face sanctions.The Strait of Hormuz is one of the world's most strategically-important choke points, particularly when it comes to the oil trade. About 30 percent of all seaborne oil is transported through it. Iran threatened to block the strait on several occasions over the years but has never followed through with its threats yet. </s> Strait of Hormuz is for all or ‘no one’: Iran’s Guards

LONDON: The head of Iran’s Revolutionary Guards said on Thursday their forces were ready to implement Iran’s threat to block the Strait of Hormuz and that if Iran cannot sell its oil under the US pressure, no other regional country will be allowed to.

“We are hopeful that this plan expressed by our president will be implemented if needed . . . We will make the enemy understand that either all can use the Strait of Hormuz or no one,” Mohammad Ali Jafari, commander of the Islamic Revolutionary Guard Corp, was quoted as saying by Tasnim news agency.

The US Navy stands ready to ensure freedom of navigation and free flow of commerce, a spokesman for the US military’s Central Command said on Thursday, after Iran warned it will block oil shipments through the Strait of Hormuz.

“The US and its partners provide, and promote security and stability in the region,” Central Command spokesman Navy Captain Bill Urban said in an email to Reuters. Asked what would be the US Naval Forces reaction if Iran blocks the Strait of Hormuz, he said: “Together, we stand ready to ensure the freedom of navigation and the free flow of commerce wherever international law allows.”

A senior US military leader said in 2012 the Guards have the ability to block the Strait of Hormuz “for a period of time” but the United States would take action to reopen it in such an event.

In May, US President Donald Trump pulled out of a multinational deal under which sanctions on Iran were lifted in return for curbs to its nuclear programme. Washington has since told countries they must stop buying Iranian oil from Nov. 4 or face financial measures. </s> Iran may block oil tankers from using the Strait of Hormuz in response to possible US sanctions over the country's nuclear programme.

US President Donald Trump unilaterally pulled out of a 2015 deal signed by President Obama.

The international accord allowed experts to inspect Iranian nuclear sites. Tehran also agreed to reduce its stocks of enriched nuclear material.

Trump has threatened to impose sanctions on Iran. In response, Iranian president Hassan Rouhani said Tehran could block oil tankers using the narrow Strait of Hormuz - cutting off supplies from the Gulf.

Iran's supreme leader Ayatollah Ali Khamenei backed his president and said: 'If Iran's oil is not exported, no regional country's oil will be exported.

Rouhani's apparent threat earlier this month to disrupt oil shipments from neighbouring countries came in reaction to looming US sanctions and efforts by Washington to force all countries to stop buying Iranian oil.

Iranian officials have in the past threatened to block the Strait of Hormuz, a major oil shipping route, in retaliation for any hostile US action.

Khamenei used a speech to foreign ministry officials to reject any renewed talks with the United States after President Donald Trump's decision to withdraw from a 2015 international deal over Iran's nuclear programme.

Khamenei added: 'The word and even the signature of the Americans cannot be relied upon, so negotiations with America are of no avail.

He claimed it would be an 'obvious mistake' to negotiate with the United States as Washington was unreliable. </s> When Iranian President Hassan Rouhani dismissed the US efforts to block all of Iran's crude oil exports, he neither mentioned the Strait of Hormuz, nor the actions Tehran could take to disrupt trade at the world's busiest oil transit chokepoint, which translates to 30 percent of seaborne global oil exports every day.

Rouhani's response was nonetheless interpreted as a threat to the narrow waterway located between Iran and Oman, where at least 18.5 million barrels of oil were transported every day in 2016, based on a US energy department report.

He had earlier complained that "it has no meaning for Iranian oil not be exported, while the region's oil is exported", adding in a defiant tone that the US "will never be able to cut Iran's oil revenues".

Before flying back from Europe to Tehran early on Thursday, the Iranian leader renewed his criticism of the US, saying its move to choke off Iranian oil "shows they have not thought about its consequences".

Ismali Kowsari, an Iranian Revolutionary Guard Corps (IRGC) commander, was more blunt, telling Iran's Young Journalist Club on Wednesday that if Iranian oil exports are prevented, "We will not permit the shipment of oil through the Strait of Hormuz."

The US military quickly responded, vowing to keep the Gulf waterways open to oil tankers and "ensure the freedom of navigation ... wherever international law allows."

Iran experts said the latest exchange of words between Tehran and Washington highlights the brewing tensions between the two countries before the return of US sanctions, as well as the implications a disruption at the Strait of Hormuz could have on the global energy market.

Saeid Golkar, an Iran expert at the University of Tennessee in the US, said a threat by Iran to block the strait is "not a new thing", noting that the Islamic Republic's revolutionary guards had used the threat "to deter" the country's regional rivals, as well as the West.

Indeed, on many occasions from 2011 to 2016 Iran's Revolutionary Guards have threatened to shut down the Strait of Hormuz, either in response to US and European sanctions of a total oil embargo against the country. The threats, however, were never carried out. A report by the journal Foreign Policy described them as "hollow threats".

"The IRGC has been prepared for this operation for decades," Golkar said referring to the military unit, which reports directly to Iran's Supreme Leader Ayatollah Ali Khamenei.

"Rouhani using this threat is new, however," he noted, adding that it reflects the president's "frustration and hopelessness" over the impending return of US sanctions against Iran.

In an interview with Al Jazeera English television, Nader Hashimi, director for Middle East Studies at the University of Denver, said US President Donald Trump's hardline approach has only forced Iran to make drastic counter threats.

"What we are seeing right now is a result of unilateral American sanctions," he said, referring to the US decision to withdraw from the 2015 Iran nuclear deal and reimpose sanctions on Tehran.

"The United States has pursued this hardline policy and the Iranian leadership is starting to panic" and is pushing back, Hashimi added.

Golkar of the University of Tennessee, however, said that an Iranian threat to disrupt oil export in the Gulf could unsettle the energy prices, prompt countries like China and India to turn against the country, and "undermine Iran's foreign policy of looking to the East".

According to figures published by TankerTrackers.com, which monitors energy shipments at the Strait of Hormuz, Iran exported 560,000 barrels of crude oil and gas condensates to India and China in June 2018. That is followed by South Korea at 252,000 barrels a day and Japan at 206,000 barrels a day.

But it is not just Iran that will be affected by any disruption at the Strait of Hormuz.

For example, Qatar exports about 3.7 billion cubic feet of liquefied natural gas (LNG) a year through the strait. That accounts for 30 percent of the global LNG supply annually, according to the Maritime Executive website.

As of Thursday, July 5, the OPEC price of crude is at $74.62 a barrel, while the price of LNG as of June 18, 2018, was pegged at $11.6 per million British thermal units.

For years, the Strait of Hormuz has witnessed incidents that have threatened regional security as well as affected prices of oil and gas.

In April 1988 for instance, US forces sank Iran's operational fleet just days after a US frigate was badly hit an Iranian mine off the coast of Qatar, according to the US Navy.

On July 3 of the same year, the US naval ship Vincennes fired two surface-to-air missiles on a civilian Iran Air flight from Bandar Abbas to Dubai killing 290 people on board.

More recently, Iran's Revolutionary Guards detained US sailors when after their boats drifted into Iran's territorial waters in January 2016. The sailors were later released.

According to an Associated Press report in July 2017, the US Navy recorded 35 instances of "unsafe/or unprofessional" interactions with Iranian forces in 2016 and 23 similar incidents in 2015.

Given the nature of the Strait of Hormuz, the International Crisis Group, which monitors conflicts, warned that "rising tensions, incidents are almost unavoidable".

It urged Tehran and Washington, DC, to negotiate an Incident At Sea agreement to difuse tensions.

But with the US sanctions against Iran snapping back within months, the animosity between the two countries is only getting more intense. And it could be just a matter of time before the next spat erupts. </s> This article is more than 1 year old

This article is more than 1 year old

A potential confrontation between the US and Iran is brewing in the Strait of Hormuz after Tehran threatened to block the Gulf passageway in retaliation for Washington’s looming sanctions against Iranian oil exports – a threat the US military said would be immediately countered.



The Trump administration is demanding all countries end imports of Iranian oil by 4 November as part of its new policy of hostility towards Tehran after Washington’s unilateral exit from the 2015 nuclear agreement.



Iran’s president, Hassan Rouhani, responded during a rare visit to Europe this week by signalling that Tehran could disrupt regional crude shipments and cut its cooperation with the UN nuclear watchdog.



On Thursday the commander of Iran’s elite Revolutionary Guards, whose forces patrol the Strait of Hormuz – through which one-fifth of the world’s oil passes in tankers – said the Guards were ready to put Rouhani’s words into action if necessary.

Iran bans 1,300 imports as economic protest shuts shops in Tehran Read more

The US navy signalled it was ready to confront Tehran militarily in response.

Mohammad Ali Jafari, the Guards commander, was quoted by the semi-official Tasnim news agency as saying: “We will make the enemy understand that either everyone can use the Strait of Hormuz or no one.”

Bill Urban, a spokesman for US Central Command, said Washington and its allies provided security in the region and would not stand idly by. “Together, we stand ready to ensure the freedom of navigation and the free flow of commerce wherever international law allows,” he said.

The threats will bring back memories of the latter years of the 1980s Iran-Iraq war, when US forces attacked Iranian territorial waters after a US ship struck an Iranian mine.

Rouhani returned to Tehran on Thursday after lobbying European leaders to deliver a robust rebuttal to the US withdrawal from the nuclear deal.



“The Americans have claimed they want to completely stop Iran’s oil exports. They don’t understand the meaning of this statement because it has no meaning for Iranian oil not to be exported while the region’s oil is exported,” Rouhani said this week in Switzerland.



“If you can do such a thing, do it and see the result,” Rouhani added in a threat that was lauded at home by the commander of the Quds force, Qassem Suleimani.

The fate of the nuclear deal is in the balance after Donald Trump pulled the US out of it in May before imposing new sanctions despite European resistance and Tehran’s adherence to the agreement, as verified multiple times by the International Atomic Energy Agency (IAEA).



Although the US initially demanded all countries end imports of Iranian oil in the autumn, it is likely to grant temporary exceptions to countries that rely heavily on Iranian crude such as China, India and Turkey.

Ellie Geranmayeh, a senior policy fellow at the European Council on Foreign Relations, said Iran did not view the nuclear agreement solely through the prism of an economic agreement, but also as a political and security deal. She said the Trump administration’s policy was not solely to exit the joint comprehensive plan of action (JCPOA) but also to make it impossible to sustain it.

Rouhani had two overarching messages during his visit to Europe, Geranmayeh said. “First, Iran expects more concrete action from all parties to the nuclear agreement to sustain economic channels. Second, sustaining oil exports and market share is a red line for Iran.

Ex-Nato chief refused visa waiver to US because of Iran trips Read more

“If Trump implements his threat to squeeze Iran’s oil exports, Tehran is prepared to escalate against the US to impose direct costs for global oil markets. This is a core issue of national security behind which there is growing backing from the political establishment.”

Despite the US’s withdrawal, the deal has not yet collapsed as Europe remains committed to salvaging it. Geranmayeh said Europe was expected to present a more concrete economic package to Iran during a ministerial meeting at the JCPOA’s joint commission on Friday.



Also at stake is Rouhani’s political career. The agreement is the moderate cleric’s main achievement in office, for which he was rewarded with a second term last year, but Trump’s antagonism towards Iran has empowered Rouhani’s hardline opponents at home, risking him becoming an early lame duck.



Trump’s hostility has compounded the country’s economic woes, while Iran is going through weeks of protests due to a currency crisis and environmental issues. Hardliners have started their onslaught on Rouhani, blaming his economic performance for the protests. </s> Five Iranian gunboats failed in an attempt to seize a British oil tanker in the Persian Gulf on Wednesday, according to US officials cited in a CNN report.

Islamic Revolutionary Guard Corps (IRGC) forces ordered a British oil tanker to alter its route in the Strait of Hormuz and tried to force it near Iranian-controlled waters, according to CNN. But the HMS Montrose, a UK Royal Navy frigate, was escorting the oil tanker and pointed its weapons on the IRGC vessels.

The HMS Montrose verbally warned the Iranian forces, who then backed off, CNN reported. US aircraft observed and recorded the incident, CNN said.

The incident follows increased tensions between Iran and the UK. On Wednesday, Iran threatened to seize UK tankers, which have recently been escorted by the HMS Montrose and a minehunter traveling through the Strait of Hormuz.

Iran's threats came after British Royal Marines seized an Iranian tanker suspected of violating the European Union's sanctions by shipping about 2 million barrels of crude oil to Syria.

"You [Britain] are the initiator of insecurity and you will realise the consequences later," Iranian President Hassan Rouhani said to a state-sponsored news agency on Wednesday.

"Now you are so hopeless that, when one of your tankers wants to move in the region, you have to bring your frigates because you are scared," Rouhani added. "Then why do you commit such acts? You should instead allow navigation to be safe."

The US Defense Department said it "was aware" of the reports and referred the matter to the Royal Navy. The Royal Navy did not immediately respond to a request for comment.

"We are aware of the reports of [the IRGC's] harassment and attempts to interfere with the passage of the UK-flagged merchant vessel British Heritage today near the Strait of Hormuz," Navy Capt. Bill Urban said to INSIDER.

"Threats to international freedom of navigation require an international solution," Urban added. "The world economy depends on the free flow of commerce, and it is incumbent on all nations to protect and preserve this lynchpin of global prosperity." </s> Prime Minister Scott Morrison has confirmed that Australia will lend military support to protect shipping in the Middle East.

The commitment has been long expected, with Australia sending a frigate, an aircraft and some headquarters staff as part of a US-led coalition in the Strait of Hormuz, amid deepening tensions between the US and Iran.

So what is this conflict about, what is Australia’s involvement, and what are the risks associated with it?

What is the Strait of Hormuz?

The Strait of Hormuz is a narrow body of ocean connecting the Persian Gulf and the Gulf of Oman. Its width varies, but at its narrowest is 39km. It is the main passage for transporting oil from the Middle East out into the Indian Ocean and beyond; a fifth of the world’s oil is shipped through this strait. This includes 15-16% of crude oil and 25-30% of refined oil that is destined for Australia.

Iran and Oman border the Strait of Hormuz. As the littoral states, they have sovereignty over the waters in the Strait of Hormuz, but that sovereignty is subject to navigational rights enjoyed by all states. Ships from all countries have the right to move continuously and expeditiously through these waters without interference from either of the coastal states.

What is the conflict between Iran and the US about?

The primary concern in relation to the Strait of Hormuz at the moment is interference with commercial shipping. The United States has accused Iran of attacks against tankers and has destroyed an Iranian drone.

In recent weeks, Iran has seized the Stena Impero, a British-flagged commercial tanker, as well as a US drone. It also boarded but released a Liberian-flagged, British-owned vessel. These actions have heightened concerns about navigational rights through the strait and the consequences for global oil supply.

This is all against a backdrop of heightened tension between Iran and the United States, resulting from American sanctions against Iran and its abandonment of the 2015 nuclear deal with Iran. It is the latest rift in a relationship that has been fraught for decades, punctuated by events like Iran taking over the US embassy and holding hostages in 1979, the United States backing Iraq during the Iran-Iraq war in the 1980s, and Iran’s development of a nuclear program in the 1990s.

Shipping has previously been threatened within the Persian Gulf and along the Strait of Hormuz, especially during the Iran-Iraq war. This conflict was also known as the Tanker War because of the threats to commercial ships transporting oil out of the Gulf. It resulted in the United States and other neutral states providing naval escorts and conducting convoys to protect shipping.

Australia has announced it will be joining an “International Maritime Security Construct” that is focused on ensuring the freedom of shipping lanes and commercial navigation.

This international presence is intended to respond to incidents and threats as they occur during passage through the strait. The prime minister has announced that Australia’s involvement is limited in terms of time and resources and emphasised the importance of de-escalation.

A legal difficulty for Australia is that this sort of convoy relies on a doctrine that is associated with the law of naval warfare, and so would usually only apply if there is an armed conflict between states. Australia is instead maintaining the view that its warships are also exercising their navigational rights through the Strait of Hormuz.

The new mission is cast as an enhancement of previous contributions to counter-terrorism and counter-piracy operations. However, these operations have been directed at non-state actors, rather than the naval forces of another country. Iran may claim that their presence constitutes an unlawful threat of the use of force.

The previous UK foreign secretary, Jeremy Hunt, characterised Iran’s actions as “state piracy”. He advocated for “European-led maritime protection mission(s) to support safe passage of both crew and cargo”.

British Prime Minister Boris Johnson instead decided to join the US-led mission. In joining this effort, Australia has emphasised the importance of its multilateral nature. This matters when it is recalled that the oil tankers concerned are typically flagged to a wide variety of states, are owned by nationals from other states, might be chartered by companies from different states and are frequently crewed by nationals from diverse states.

As a result, far more countries than just Iran, the United States, the United Kingdom and Australia have stakes in these issues.

How does it affect the global oil trade?

The prospect of oil tankers being seized in the Strait of Hormuz will likely increase the insurance premiums on shipping. In addition to seizing ships, Iran has threatened to close the strait.

Concerns also exist that Iranian military forces might hinder passage, or might go so far as mining the strait. Any of these scenarios poses a risk to global oil supply and even the prospect of these actions causes a jump in crude oil prices.

What might happen from here?

Ultimately, Iran shares an interest with the United States and other countries in maintaining navigational rights for commercial shipping. So much is evident in Iran’s own response to the British Royal Navy seizing one of its vessels off Gibraltar.

Given that over 90% of the world’s traded goods are carried by ship, every country has a strong reciprocal interest in ensuring freedom of navigation. Iran is using one of the main political tools it has at its disposal to exert pressure in response to current US policies.

Preventing escalation should be the prime concern of all actors and would be the most mutually beneficial outcome. </s> US President Donald Trump blames Iran for Gulf of Oman oil tanker attacks

US President Donald Trump has blamed Iran for attacks on two oil tankers in the Gulf of Oman and said the US wanted international consensus about the threat to shipping, despite Tehran denying involvement.

The attacks have raised fears of a confrontation in the vital oil shipping route at a time of increased tension between Iran and the US over American sanctions and military moves in the Middle East, Tehran's proxy groups in the region and its nuclear program.

"Iran did do it and you know they did it because you saw the boat," Mr Trump told Fox News.

He was referring to a video released on Thursday by the US military, which said it showed Iran's Revolutionary Guards were behind the blasts that struck the Norwegian-owned Front Altair and the Japanese-owned Kokuka Courageous at the mouth of the Gulf.

The US military said black-and-white footage it filmed from a US aircraft showed Iran's Guards on a patrol boat drawing up to the Kokuka Courageous and removing an unexploded limpet mine from its hull.

The Japanese-owned tanker, abandoned by its crew, was being towed to a port in the United Arab Emirates on Friday, after a Dutch firm said it had been appointed to salvage the ships.

The second tanker, the Front Altair, which was set ablaze by a blast, was still languishing at sea, although the fire that charred the hull had been extinguished.

Iran said the video proved nothing and that it was being made into a scapegoat.

"These accusations are alarming," Iranian Foreign Ministry spokesman Abbas Mousavi said.

Iran had dismissed earlier US claims that it was behind the attacks and accused the US and its regional allies such as Saudi Arabia and the United Arab Emirates of "warmongering" by making accusations.

Last month, the US sharply tightened economic sanctions that are now damaging the economy of Iran. In response, Tehran has threatened to step up its nuclear activity.

Tehran also said it could block the Strait of Hormuz, the main route out for Middle Eastern oil, if its own exports were halted.

Mr Trump, who last year pulled the US out of an agreement between world powers and Tehran to curb Iran's nuclear program in exchange for some sanctions relief, said any move to close the Strait of Hormuz would not last long.

Last month Washington scrapped waivers that had allowed some countries to continue importing Iranian oil.

Iran's crude exports fell to about 400,000 barrels per day (bpd) in May, starving its economy of its main source of revenue.

US planning contingencies but does not want conflict

Tehran and Washington have both said they have no interest in starting a war.

But this has done little to assuage concerns that the two arch foes could stumble into a conflict.

Mr Trump's administration is focused on building international consensus following the attacks, US Defence Secretary Patrick Shanahan said.

Asked whether he was considering sending more troops or military capabilities to the Middle East, Mr Shanahan said: "As you know we're always planning various contingencies."

But he emphasised the issue of building consensus.

"When you look at the situation, a Norwegian ship, a Japanese ship, the Kingdom of Saudi Arabia, the UAE, 15 per cent of the world's oil flows through the Strait of Hormuz," he said.

"So we obviously need to make contingency plans should the situation deteriorate. We also need to broaden our support for this international situation."

China, the European Union and others have called for restraint from all sides.

In a notable signal that close US allies are wary of Washington's position, Germany said the US video was not enough to apportion blame for Thursday's attack.

But British Foreign Secretary Jeremy Hunt differed, saying no other state or non-state actor could have been responsible.

Oil prices rose about 1 per cent on Friday, reflecting market jitters.

Insurance costs for ships sailing through the Middle East have jumped by at least 10 per cent after the attacks.

UN Secretary-General Antonio Guterres called for an independent investigation of the attacks.

The tanker attacks took place while Prime Minister Shinzo Abe of Japan — a big buyer of Iranian oil until it was forced by the new US sanctions to stop — was visiting Tehran on a peacemaking mission, bringing a message from Mr Trump.

Iran dismissed Mr Trump's message, details of which were not made public.

"I do not see Trump as worthy of any message exchange, and I do not have any reply for him, now or in future," Iranian Supreme Leader Ali Khamenei said.

Washington has also blamed Iran or its proxies for attacks on May 12 that crippled four oil tankers in the same area, and has said Tehran was behind May 14 drone strikes on two Saudi oil-pumping stations. Tehran has denied all those charges.
Iran threatens to close the Strait of Hormuz to shipping if the U.S. re-applies sanctions to the country after the U.S withdrew from the JCPOA deal earlier in the year.