TEHRAN, Iran (AP) — The U.S. warned Iran Wednesday that it will not tolerate any disruption of naval traffic through the Strait of Hormuz, after Iran's navy chief said the Islamic Republic is capable of closing the vital oil route if the West imposes new sanctions targeting Tehran's oil exports.
Iran's Adm. Habibollah Sayyari told state-run Press TV that closing the strait, which is the only sea outlet for the crucial oil fields in and around the Persian Gulf, "is very easy" for his country's naval forces.
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by yolanda on Wed Dec 28, 2011 07:15 PM PST"With concern growing over a possible drop-off in Iranian oil supplies if sanctions are imposed, a senior Saudi oil official said Gulf Arab nations are ready to offset any loss of Iranian crude.
That reassurance led to a drop in world oil prices. In New York, benchmark crude fell 77 cents to $100.57 a barrel in morning trading. Brent crude fell 82 cents to $108.45 a barrel in London."