Let’s just say Iran makes good on its recent threats to shut down the Strait of Hormuz. And let’s say that with one-fifth of the world’s oil supply bottled up, the price of a barrel of oil then almost doubles, as some analysts predict, to more than $200.
Oman, which faces Iran across the Strait of Hormuz, said it’s poised to start raising cash for a $3 billion rail line offering an alternative route for oil and freight shipments that funnel through the 21 mile-wide channel.
Iran probably would attempt to block the Strait of Hormuz at the mouth of the Persian Gulf only as a “last resort,” according to a Pentagon historian who’s written a new history of America’s 33-year shadow war with the Islamic Republic.
An Iranian court sentenced a former U.S. soldier of Iranian descent to death for spying amid rising tensions over concern the Persian Gulf nation may try to close the Strait of Hormuz if Western sanctions are imposed.