PPRuNe Forums - View Single Post - Iran Threatens to Close Strait of Hormuz
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Old 28th Dec 2011, 10:19
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skydiver69
 
Join Date: Jul 2008
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Age: 54
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Iran has a very powerful weapon in its threats or ability to close the Strait of Hormuz however I think it is a double edged sword.

Iran is a net exporter of oil so closing the strait would reduce its ability to earn export income. It is also a net importer of fuel as it only has enough capacity to refine about 50% of its domestic requirements so a closure would also affect its ability to import this. Other Middle East oil producers might also get a bit annoyed with Iran and therefore cut off their exports to the country. Either way this would lead to domestic supplies would be squeezed and the population would be effected.
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