Hormuz Strait, one of the most important waterways in the world
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Thread: Hormuz Strait, one of the most important waterways in the world

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    Senior Member newmonies's Avatar
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    Hormuz Strait, one of the most important waterways in the world

    Iran’s Threat to Hormuz Strait; Iraq’s Diplomatic Opportunity

    Posted on 24 January 2012. Tags: Hormuz, Iran, oil exports
    Iraq would be drastically affected should Iran block the Hormuz Strait. Most of the oil Iraq produces is exported via the Strait. The scenario is seeing Iraq, distinct because of its good relations with both the US and Iran, practice its new diplomacy again, according to this article from NIQASH.
    Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
    Iran’s threats to block seagoing traffic in the Hormuz Strait, one of the most important waterways in the world, have caused strong reactions in Iran’s neighbour, Iraq, as well. Iran has made the threats in response to possible European and US economic sanctions. And despite the current internal political turmoil in Iraq, it has also led to another significant attempt by Iraq at international diplomacy.
    Around one fifth of all crude oil passes through the narrow shipping channel, which lies between the Gulf of Oman and the Persian Gulf. Iraq is currently heading OPEC (the Organization of the Petroleum Exporting Countries) and as such, Iraq’s Minister of Oil Abdul-Kareem Luaibi announced that he would be travelling to Tehran this week in order to extract assurances from Iran that they wouldn’t block the Strait.
    In terms of diplomacy, this is another notable attempt at mediation by Iraq. The most recent involved Iraq’s intervention between the Arab League and Syria, which continues this week with Iraq declaring further intentions to continue to assist in trying to defuse the Syrian crisis.
    In terms of the Hormuz Strait issue, Iraq is really the only nation that can do this kind of thing, as it has good relationships with the US and Iran. Iraq also sits in the middle between the nations like Saudi Arabia who are friendly towards the US and nations that consider themselves resistant to US influence, such as Iran. It’s hard to say whether this diplomatic role will continue in the future – some believe that Iran’s influence will grow and lead Iraq into that country’s corner whereas others say that US influence will remain strong.

    Last edited by newmonies; 01-25-2012 at 02:41 PM.
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    Moderator Honugirl's Avatar
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    To add to newmonies post....

    Iraqi oil to be affected if Hormuz Straits closed

    BAGHDAD / IraqiNews.com: If the Hormuz Straits were closed, Iraq will lose two thirds of its oil exports and thereby gravely affect the Iraqi economy, an oil expert said today. Expert Majeed al-Hiti, in telephone call from Dubai, said to IraqiNews.com that “most of Iraqi oil is transported through Basra terminal”. “If the Straits were closed, Iraq will be gravely affected by this closure”, he confirmed. He pointed out that the closure will also affect the international markets as well as the economies, which will not resist withholding 17 million b/d.

    Hiti clarified that the closure of the Straits is not very easy, as it is a 35-mile waterway. On the other hand, he expected that the oil Gulf producing countries will try to find other vents, but, nevertheless, some other countries have no routes except for the Gulf. He expected the rise in oil prices to reach 200 or 300 dollars per barrel, if Iran implemented its threats.

    “A semi-declared war has been made against Iran; it seemed that America and its European allies to a certain extent succeeded in mobilizing the oil importing countries to this end, like Japan, China and South Korea,” Hiti added. He pointed out that the results of this campaign began to appear by the deterioration in Iranian currency, limitations on exports and imports, and halting deals with the Iranian Central Bank.

    Last edited by Honugirl; 01-25-2012 at 03:43 AM.
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