On December 13, Parviz Soruri, a delegate from Iran's National Security and Foreign Policy Commission, assured that the maneuvers taking place the Straight of Ormuz are designed to "test the country?s capacity to close off the region."
This proposed maneuver would result in shortages across most of the world, because the straight is a major navigation route through which approximately a third of the global petroleum transported by sea travels. Instead of abating, pressure is increasing.
Mahmud Ahmadineyad's team is proceeding with their maneuvers in the region and two land-sea missles have already been successfully launched during the past seven days according to Iran's official news agency, IRNA. Geopolitical tension was the focus of attention during the first trading session yesterday as the price of crude rose. Tuesday posted the highest daily rebounds since August 10 and October 27 for Brent crude and West Texas oil, respectively.
Suppressing the situation in Iran, something that the United States is considering for now, would signify a clear reverse for global economic interest and for myriad companies that directly depend on crude oil as a basic material, which would naturally increase in price as supply drops. On the one hand, petroleum companies and airlines would clearly be the most affected if tensions escalate in Iran, a country with supposed nuclear capabilities. The United States says that it will keep its military operations running in the region.
On the other hand, national economies will be punished considering that most of the oil that they consume is imported. The shortage will be one more barrier to growth, and we will continue to endure an unstable economic climate.