What goes down, must come up. In this case crude, which is soaring on news out of FARS that Iranian lawmakers have drafted a bill proposing a blockade of the Straits of Hormuz for oil tankers heading to sanctions supporters, i.e., embargo countries. Naturally, if implemented, this would mean an almost inevitable military retaliation on behalf of the "western world." Then again, this is not the first time Iran has postured with a blockade.
A member of the Iranian parliament (Majlis) said that Iran will close the Hormuz Strait if the economic sanctions against the Islamic Republic take effect.
Arsalan Fathipour in an interview with Alalam News Network said that the recent oil price fall will not last for long.
"We take the control of the Hormuz Strait. If we are supposed to be sanctioned, we will not allow a drop of oil to pass through the strait," he said, Fars News Agency reported.
"In such a situation, oil price will surge and we will see that those who have imposed sanctions will not be able to be accountable for their people," he noted.
He noted that Iran can find new customers for oil.
Iran has stored up imports and hard currency for a "battle" against EU sanctions, officials said on Sunday, the day that the measures aimed at pressuring the Islamic Republic over its nuclear program take effect.
Vice President Mohammad Reza Rahimi said the country has stockpiled the population's daily needs to reduce the impact of the embargo hitting the oil and banking sectors.
"Today, we are facing the heaviest of sanctions and we ask people to help officials in this battle," Rahimi was quoted by the IRIB News.
He said the "dastardly sanctions" might cause "occasional confusion" in the market, but that the Iranian nation would not be stopped.
Central bank governor Mahmoud Bahmani also told the Mehr News Agency that Iran has "plans" to deal with the embargo and enough hard currency to meet its import needs.
And from Reuters:
Iran's National Security and Foreign Policy Committee has drafted a bill calling for Iran to try to stop oil tankers from shipping crude through the Strait of Hormuz to countries that support sanctions against it, a committee member said on Monday.
"There is a bill prepared in the National Security and Foreign Policy committee of Parliament that stresses the blocking of oil tanker traffic carrying oil to countries that have sanctioned Iran," Iranian MP Ibrahim Agha-Mohammadi was quoted by Iran's parliamentary news agency as saying.
"This bill has been developed as an answer to the European Union's oil sanctions against the Islamic Republic of Iran."
Agha-Mohammadi said that 100 of Tehran's 290 members of parliament had signed the bill as of Sunday.
If indeed willing to follow through, it surely mean Iran has at least implicit whisper support of Russian and Chinese support when the situation inevitably escalates.