About 40 percent of the world's crude oil shipments passes through the two-mile wide channel of the strategic Straits of Hormuz. Iranian forces are deployed at the head of the channel. Oman and the United Arab Emirates are located on the other side. Teheran could easily block the Straits of Hormuz and use its missiles to strike tankers and GCC oil facilities, according to the new edition of Geostrategy-Direct.com. Within weeks, the rest of the world would be starving for oil and the global economy could be in danger.
The U.S. Energy Information Administration projects that oil tanker traffic through the Straits of Hormuz will rise to about 60 percent of global oil exports by 2025.
Rezai, a former commander of the Islamic Revolutionary Guards Corps and a candidate for president, told the Fars News Agency that any Western attack on Iran would send oil prices rocketing to $70 per barrel. He said such a significant increase in oil prices would also be sparked by international sanctions on Teheran.