Crude Spikes On News Iran Lawmakers Propose Straits Of Hormuz Blockade For Sanctions Countries

Tyler Durden's picture




 

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.

More:

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.

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Mon, 07/02/2012 - 10:17 | 2580514 Coast Watcher
Coast Watcher's picture

Match, meet gasoline.

Mon, 07/02/2012 - 10:30 | 2580558 SHEEPFUKKER
SHEEPFUKKER's picture

Operation Iranian Freedom launches in 3, 2, 1. 

Mon, 07/02/2012 - 10:42 | 2580606 MillionDollarBonus_
MillionDollarBonus_'s picture

I worry that our foreign policy is simply too weak given the clear and present danger of terrorism from countries like Iran, Syria, Iraq and Afghanistan. we need to seriously reconsider our commitment to defending Israel and America, and ask ourselves whether we are doing everything we can to fight terrorism domestically AND abroad. Next time you're at work, relaxing on the beach, walking the dog in the park or shopping at the mall, just look around and ask yourself these three important questions:

  1. Do I really know what these people are up to?
  2. How much do I know they are not sympathetic to Islamic extremists or any other right wing interests?
  3. How can I guarantee that these people are not part of some extreme libertarian group like the 'sovereign citizens' or 'Oath Keepers'?
Mon, 07/02/2012 - 10:56 | 2580641 LynRobison
LynRobison's picture

Oh yeah, you've got to watch out for those libertarians. They might assert their rights under the constitution, and then where would our nation be? Those arrogant libertarians seem to come and go as they please, without so much as a "by your leave"!

Mon, 07/02/2012 - 11:06 | 2580675 tocointhephrase
tocointhephrase's picture

Guess you were in the 'Iraq can strike in 45mins' camp? Defend Israel, ever heard of the Israeli Army/Mossad? I think they can look after themselves.

PUT YOUR POM POMS AWAY!

 

Mon, 07/02/2012 - 11:46 | 2580772 aerojet
aerojet's picture

Pretty sure he was trolling...

Mon, 07/02/2012 - 11:08 | 2580684 WTFx10
WTFx10's picture

I worry that our foreign policy is simply too weak given the clear and present danger of terrorism from Israel. We need to seriously reconsider our commitment to defending America, and ask ourselves whether we are doing everything we can to fight the Rothchilds control domestically AND abroad. Next time you're at work, relaxing on the beach, walking the dog in the park or shopping at the mall, just look around and ask yourself these three important questions:

  1. Do I really know what these people are up to? 
  2. How much do I know they are not sympathetic to Israeli extremists or any other Zionists interests?
  3. How can I guarantee that these people will be hunted down and prosecuted for their crimes against humanity by the 'sovereign citizens' or 'Oath Keepers'?

 

Reality check.

Fixed it for you Million dollar Blow Job

Mon, 07/02/2012 - 11:11 | 2580692 DaveyJones
DaveyJones's picture

despite the verse

our Persian purse is getting worse

imported american democracy 

smells distinctly like a hearse   

Mon, 07/02/2012 - 11:16 | 2580700 Lucky Guesst
Lucky Guesst's picture

Are you joking? Imagine havine the balls to take your family to the market or God forbid a beach if you lived in half the world and thinking....

1 .How many drones are watching?

2. Does this sandwich look like a bomb?

3. I sure hope that stressed out American soldier doesn't pull the trigger. But if he does please Lord don't let him post the pics of my blown apart wife and kids on the internet!!!!

Mon, 07/02/2012 - 11:48 | 2580778 10mm
10mm's picture

MDB=Plant.

Mon, 07/02/2012 - 11:58 | 2580803 tocointhephrase
tocointhephrase's picture

Yeah a hermaphrodite. GO FUCK YOURSELF Hyper Inflated Bonus!

Mon, 07/02/2012 - 12:02 | 2580812 El Tuco
El Tuco's picture

@MDB....Careful, you're posts drip with such sarcasm that you won't be able to fool anyone anymore.

What you write is exactly what TPTB and the MSM would like us to believe and unfortunately so many Americans have been programed to fear this nonsense. Would be funny if it weren't so sad.

People have to be reminded how absurd it has all become. Keep it up.....

+1

Mon, 07/02/2012 - 11:34 | 2580742 BBullionaire
BBullionaire's picture

Operation Iranian Liberation

Fixed it for you

http://bulletsbeansandbullion.blogspot.co.uk/

Mon, 07/02/2012 - 11:54 | 2580791 viahj
viahj's picture

clever, but Fail In Accepting Truth

Mon, 07/02/2012 - 12:20 | 2580871 walcott
walcott's picture

and ends 1, 2, 3.

Mon, 07/02/2012 - 10:32 | 2580566 Cortez the Killer
Cortez the Killer's picture

time to take out those farsi ass clowns.

Drop a single massive ordinance on the evil mullah cocksuckers prayer service and let the fun begin.

Mon, 07/02/2012 - 11:02 | 2580665 WTFx10
WTFx10's picture

Drop Multiple massive ordinance on the evil PRIVATE ROTHCHILDS CRIMINAL BANKING CARTELS cocksuckers and the Terrorist State of Israel and let the fun begin.

Brought you in to reality.

Mon, 07/02/2012 - 11:10 | 2580688 Cortez the Killer
Cortez the Killer's picture

not your reality; bleating, baying muslim donkey

 

Mon, 07/02/2012 - 11:40 | 2580759 tocointhephrase
tocointhephrase's picture

Your sick. GET HELP!

Mon, 07/02/2012 - 13:43 | 2581111 akak
akak's picture

His sick what?

Mon, 07/02/2012 - 19:46 | 2582173 TheFourthStooge-ing
TheFourthStooge-ing's picture

akak asked:

His sick what?

His sick arrogance. Does he really think that Americans can effect even a single ordinance in Iran? Good luck getting even a bicycle licensing ordinance passed, let alone a massive ordinance.

Even at the level of the Tehran City Council, you must actually be elected before you can propose and/or vote on any ordinance. I'd be surprised if anyone other than an Iranian citizen is eligible to be elected.

Mon, 07/02/2012 - 14:19 | 2581239 Cast Iron Skillet
Cast Iron Skillet's picture

<sarc>that's it! nuke 'em till they glow! Them damn cocksukkers!</sarc>

Mon, 07/02/2012 - 10:35 | 2580572 cossack55
cossack55's picture

Certainly a SWIFT response.

Mon, 07/02/2012 - 11:05 | 2580673 Killtruck
Killtruck's picture

We are gonna free the shit out of you.

Mon, 07/02/2012 - 10:17 | 2580515 RyanW525
RyanW525's picture

Nothing better than a recycled geopolitical story to hide the pending economic collapse...

Mon, 07/02/2012 - 10:38 | 2580588 MachoMan
MachoMan's picture

no telling how much money was made front running the news...  must be nice.  I wonder how long the story will get traction without action?  (they ain't gon do it).

Mon, 07/02/2012 - 10:39 | 2580592 Marginal Call
Marginal Call's picture

Iran still isn't capable to close the straights down.  They can blow a lot of hot air to get the price jacked up.  China's still buying

Mon, 07/02/2012 - 10:45 | 2580618 Element
Element's picture

They didn't say close the strait entirely, they said they'd prevent sanctioning states getting oil via it.

The result will be the greatest battle since WWII (and bigger than most of those too).

Mon, 07/02/2012 - 11:02 | 2580668 Marginal Call
Marginal Call's picture

Acting on that threat just one time will lead to Iran being completely neutralized.  They will not be allowed to shut global commerce down.  And they will not try.  This is about jacking prices around.

 

The sanctions are hot air too.  They're still going to be shipping all their oil to China, and nobody is going to stop them. 

Mon, 07/02/2012 - 11:52 | 2580784 optimator
optimator's picture

Speaking of WWII, didn't they say Hitler was crazy to start a war on TWO fronts?  I can't count the fronts we're fighting on now.

Mon, 07/02/2012 - 14:17 | 2581231 greensnacks
greensnacks's picture

Iran may have dug themselves into a hole, but they might be able to live in that hole for a while.

Sanctions? We might have made it more difficult for them to do business, but China is exempt and Iran is skirting the sanctions by re-flagging their oil tankers and using pipelines to re-route their crude. Oh and with oil going up due to sanctions, they get paid more for what they can deliver to China and others, offsetting some of the cost of the sanctions.

Mon, 07/02/2012 - 10:17 | 2580516 lizzy36
lizzy36's picture

Romneys wet dream (not sure he is allowed to have those, but i digress) - oil spiking as economy contracts. Unfortunately, market being nothing more than a trained seal, is back Green on probablility of more Fed stimulas.....#wealtheffect. Trickle down economics, not working since 1980, but hey maybe 2013 will be its year.

Mon, 07/02/2012 - 10:41 | 2580605 azzhatter
azzhatter's picture

I don't believe Mittens is allowed impure thoughts unless it involves bankers having sex with the public

Mon, 07/02/2012 - 13:49 | 2581128 akak
akak's picture

 

I don't believe Mittens is allowed impure thoughts

Actually, he is --- as long as he is wearing his special magical secret underwear, he is shielded from all sin.  Until he dies and becomes a god in his own private universe, that is.

Seriously, I couldn't make up this sort of shit if I tried, and yet millions accept it as God's given truth!  Our species is truly insane --- it's no wonder that no aliens out there in the universe want any fucking thing to do with us.

Mon, 07/02/2012 - 14:23 | 2581260 DaveyJones
DaveyJones's picture

non consensual sex with the public

Mon, 07/02/2012 - 10:18 | 2580517 SilverTree
SilverTree's picture

Texas-Tea!

Mon, 07/02/2012 - 10:24 | 2580540 Oh regional Indian
Oh regional Indian's picture

Are you saying there is going to be a Horrormuse Tea Party, WOT with Barrel's of the light/sweet stuff? Strait up?

Very dangerous game, this selective sanction game the US is playing. Straight up, no holds barred alignment.

India gets a slap on the wrist and threats for it's Iranian/gold/Ruppee tango.

China gets a go-ahead.

Singapore gets the go ahead? WTF? I mean WTI?

Japan, frigging crumbling from power shortages, has to dance on shards of glass to somehow get Iranin Oil?

What a mad, sad world.

ori

war-of-the-worlds

Mon, 07/02/2012 - 10:36 | 2580580 cossack55
cossack55's picture

True, but at least it is getting more entertaining

Mon, 07/02/2012 - 10:42 | 2580610 i-dog
i-dog's picture

It's possibly why the Iranians occassionaly poke a stick into the tiger cage ... just to get a laugh from seeing it jump!

Mon, 07/02/2012 - 10:19 | 2580518 bdc63
bdc63's picture

? ... WTI is down 1.61 according to my screens ... Brent down 1.47

Mon, 07/02/2012 - 10:20 | 2580522 tocointhephrase
tocointhephrase's picture

And Gold is not even on the screen according to CNBC. 

Mon, 07/02/2012 - 10:32 | 2580567 Snidley Whipsnae
Snidley Whipsnae's picture

Screw CNBC... here is a screen you can 'believe in'...

http://finviz.com/futures_charts.ashx?t=GC&p=m5

Mon, 07/02/2012 - 10:22 | 2580533 Cdad
Cdad's picture

@ bdc63

That is because Iran has as much chance of closing the Straits as I do in a bass boat.  We've done this before.

Mon, 07/02/2012 - 11:53 | 2580787 11b40
11b40's picture

How many mines can you carry in your bass boat.

IED's were the biggest single killer of Americans and the most destabilizing weapon used against us in Iraq.  Cheap, easy to transport, easy to operate, and very deadly. 

Mines are the naval equivelent if IED's.  Iran has 10's of thousands of them with various levels of sophistication.  They don't have to have to do much of anything other than let a few float around in the gulf for the insurance companies to shut down tanker traffic.  They could even deny the mines were theirs....and they could even be right.  After all, false flags have been flown before.

Mon, 07/02/2012 - 12:41 | 2580916 Citxmech
Citxmech's picture

You can't select targets with mines - they are indiscriminant by design - hence they could not be relied upon in a selective blockade.

Mon, 07/02/2012 - 10:28 | 2580554 CvlDobd
CvlDobd's picture

@bdc63

I see you've invested in a Barclays terminal.

Mon, 07/02/2012 - 10:24 | 2580541 zilverreiger
zilverreiger's picture

It's their territorial waters, then can do as they please. Iran only needs to keep the threat going, and occasionally fire at an offending tanker for the desired effect, they dont have to "hold" the position.

Mon, 07/02/2012 - 10:34 | 2580570 Snidley Whipsnae
Snidley Whipsnae's picture

Not only does Iran not have to 'hold the position'; simply making the threat will spike tanker insurance rates, and therefore, crude prices...

Mon, 07/02/2012 - 11:08 | 2580685 Vince Clortho
Vince Clortho's picture

Thank heaven the U.S. has Hilary Clinton to issue a counter-provacation to notch the verbal threats up a notch.

Random thought:  Does Hilary go down with the ship if Obama loses?

Mon, 07/02/2012 - 12:50 | 2580933 Quicksilver
Quicksilver's picture

Did she go down for Bill?

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