Update: It's Not On Just Yet: Iran Denies Earlier Reports:... Iran Closes Straits Of Hormuz, Oil Explodes

Tyler Durden's picture

And update from Bloomberg:

  • HORMUZ STRAIT IS NOT SHUT: IRAN FOREIGN MINISTRY SPOKESMAN - Bloomberg

Earlier:

Iran has closed the Straits of Hormuz for military training as was expected yesterday, according to RanSquawk. Oil, and all other commodities, are outtahere.

And entire commodity complex:

And for those curious about more, RanSquawk speculates that the source of the data is a report in the Tehran Times saying that Iran will hold War Games in which it would close the Straits. Unclear if this is what Ran referenced when they said the Straits were already closed.

TEHRAN - MP Parviz Sorouri of the Majlis National Security and Foreign Policy Committee has said that Iran plans to practice its ability to close the Strait of Hormuz, one of the world’s most strategically important chokepoints, which accounts for about 30% of the world’s seaborne oil shipments.
“Currently, the Middle East region supplies 70 percent of the world’s energy needs, (most of) which are transported through the Strait of Hormuz. We will hold an exercise to close the Strait of Hormuz in the near future. If the world wants to make the region insecure, we will make the world insecure,” ISNA quoted Sorouri as saying on Tuesday.

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Cdad's picture

LOL!  Iranians selling all crude fwds...as fast as possible...probably faster than their boats in the  Straits Of Hormuz.


ActionFive's picture

Has to make bankers jealous.

rambler6421's picture

WWIII bitchez!

 

libertarian86.blogspot.com

Dr. Richard Head's picture

It's not war.  It's operation kinetic twist....bitchez.

MarcusLCrassus's picture

Good thing the oil pipeline they have been building to bypass Hormuz is almost done.

Problem, Iran? 

http://www.cbsnews.com/8301-505245_162-57336490/uae-says-oil-pipeline-by...

Bicycle Repairman's picture

Building pipelines to bypass "chokepoints" is a complete no-brainer.

Pegasus Muse's picture

It's a not-so-good thing for oil producers that oil pipelines are tempting High Value Targets that are hard to defend and tend to get blown up with disturbing regularity when TSHTF. 

DaveyJones's picture

yup kinda hard to protect a really long snake like that especially when those around it consider the builder a snake too.

Zero Debt's picture

Pixel perfect spike

topcallingtroll's picture

You cannot close international transitways for military exercise.

It is considered an act of war.

CIABS's picture

good point.  whether they actually did close it seems to be in doubt here.

SixFeetFromTheHedge's picture

You mean the Iranian water borders which the US had drawed and then called "international waters"? 

DaveyJones's picture

we and England redrew every other line in the greater area, why stop there

lunaticfringe's picture

Yea...so watcha gonna do about it?

infotechsailor's picture

"its an act of war"

 

... but western led sanctions and flying drones over their airspace, that's just 'non-kinetic action'

Iranian Dictator's picture

I told you bitchez I was going to close it. Now I got your drone and your oil.

maximin thrax's picture

It's been reported that someone just littered the Straits of Hormuz with targets for an impending American naval exercise. /

Caviar Emptor's picture

Send in the drones! 

MsCreant's picture

Don't you love farce? 
My fault, I fear. 
I thought that you'd want what I want - 
Sorry, my dear. 
But where are the drones? 
There ought to be drones. 
Quick, send in the drones.

MsCreant's picture

And where are the drones? 
Quick, send in the drones. 
Don't bother - they're here.

DaveyJones's picture

and just like Emmett Kelly, it's all driven by a sad clown

Macca's picture

Maybe it has something to do with this:

OPEC SAID TO AGREE TO 30M B/D OUTPUT CEILING, DELEGATE SAYS 

Savvy's picture

Interesting. It is, of course, a senior commander of Iran's revolutionary guards that is president of OPEC this year

 

http://www.guardian.co.uk/world/2011/jul/27/iran-revolutionary-guards-opec-rostam-ghasemi

Jumbotron's picture

High oil helps create inflation.

Less money for the sheep to buy iShit.

Less money to pay off 1st and 2nd mortgage.

Economy tanks....(faster, harder, better)

Bernanke now has excuse (faster, harder, better) for QE (n).

infotechsailor's picture

succintly put. except for the fact that the bernank and banks are the ones creating the inflation. the high price of oil is just a symptom , and the strait closing is just a scapegoat for the rising prices of everything.

DaveyJones's picture

fiscal policy can not create oil. inflation is definitely a bernank bastard child but ever increasing shortage of the liquid that drives our entire economy has its own special effects.  

 http://gregor.us/fossil-fuels/old-oil-depletes-and-the-new-oil-is-slow/

LookingWithAmazement's picture

Oil already going little down. Armageddon over.

Franktastic's picture

good thing i have my 50cc scooter, that is good for 100 mpg...not to good for the snow tho.

flattrader's picture

Move to a warmer climate.  Grow potatoes.

Get a dual.  Learn to distill potatoes. Get an E85 convesion kit for bike.  Store some gasoline.  Mix booze and gas together.

Now you can put booze in your tank and belt some back.  Drive/bike while everyone else is walking.

PaperBear's picture

Is it going to stay closed ?

Caviar Emptor's picture

Ok. At last count the US was at war or otherwise engaged in battle with/in/for 5 Arab countries, and had boots on the ground in 8 (that we know of). So adding a 9th is just a walk in the park. 

Make the Persian Gulf the 6th American Great Lake

DaveyJones's picture

we're not at war silly, we're fighting terrorism with contract security forces. 

CitizenPete's picture

This isn't Dennis the Menace loosing his kite in Mr. Wilson's yard. 

Matt's picture

Actually, it sort of is, if you think about it.

Crotchity old civilization, young uber destructive civilization. Hopefully, in the end they somehow become friends. Its like Dennis the Menace as directed by Michael Bay.

topcallingtroll's picture

Ok false alarm from what i can tell.

They are conducting training to close the strait, but are not actually closing it during the training.

Did George Washington hack Tyler's account?

tmosley's picture

Where did you read that?

I don't see anything clarifying it one way or the other.

Edit:  It seems irresponsible to allow civillian traffic through a war game zone.  I could understand if they kept a corridor clear for civillian traffic, or were otherwise directing it through the area.

Tyler Durden's picture

If you have any concerns, please refer them to RanSquawk, and the market, both of which reacted to initial news distribution.

Potemkin Village Idiot's picture

@Tyler

What would be as much (if not more) interesting is if any of you could dig up who was able to FRONTRUN the spike...

I'll pay to see that...

clones2's picture

Yeah - "explodes" is a little strong of a word.  I think "pops and fades" is a little more accurate.  I was scared for a second though. :-)

americanspirit's picture

A couple of bucks a barrel is not "exploding". Now give me $25 a barrel and I'll duck and cover.

I am a Man I am Forty's picture

this is why i'm heavy in oil stocks, iran and bernanke and the warmongering us

thunderchief's picture

No need for panic, folks.

This is Iran just saying they want to go Anal. 

For the first time.

I think they may get an answer very soon.

As much as it may hurt.

Ying-Yang's picture

This was a reference to US Defense Secretary Leon Panetta's warning Friday,  Dec. 2  "…any disruption of the free flow of commerce through the Persian Gulf is a very grave threat to all of us" and a red line for the US."