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Published: December 28, 2011
Updated: December 28, 2011 - 12:00 AM
A senior Iranian official Tuesday delivered a sharp threat in response to economic sanctions being readied by the United States, saying his country would retaliate against any crackdown by blocking all oil shipments through the Strait of Hormuz, a vital artery for transporting about one-fifth of the world's oil supply.
The declaration by Iran's first vice president, Mohammad-Reza Rahimi, came as President Barack Obama prepares to sign legislation that, if fully implemented, could substantially reduce Iran's oil revenue in a bid to deter it from pursuing a nuclear weapons program.
Before the latest move, the administration had been laying the groundwork for cutting off Iran from global energy markets without raising the price of gasoline or alienating close allies.
Apparently fearful of the expanded sanctions' possible impact on the already stressed economy of Iran, the world's third-largest energy exporter, Rahimi said, "If they impose sanctions on Iran's oil exports, then even one drop of oil cannot flow from the Strait of Hormuz," according to Iran's official news agency.
Iran just began a 10-day naval exercise in the area.
Obama administration officials have recently said that the United States has a plan to keep the strait open in the event of a crisis.
In Hawaii, where Obama is vacationing, a White House spokesman said there would be no comment on the Iranian threat. That seemed in keeping with an effort to lower the level of angry exchanges, partly to avoid giving Iran the satisfaction of a response and partly to avoid spooking financial markets.
But the energy sanctions carry the risk of confrontation, as well as economic disruption, given the unpredictability of the Iranian response.
Some administration officials believe that a plot to assassinate the Saudi ambassador to the United States ? which Washington alleges received financing from the Iranian Revolutionary Guard Corps ? was in response to U.S. and other international sanctions.
Merely uttering the threat appeared to be part of an Iranian effort to demonstrate its ability to cause a spike in oil prices, thus slowing the U.S. economy, and to warn U.S. trading partners that joining the new sanctions, which the Senate passed by a rare 100-0 vote, would come at a high cost.
Source: http://feedproxy.google.com/~r/tbo/nationworld/~3/CUzOFts3vgI/
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