US vows to keep oil lanes open after Iran threatens to block key waterway
IRGC commander says Iran could halt crude going through Strait of Hormuz, after Rouhani warns of ‘consequences’ to US sanctions
The US military on Wednesday reiterated its promise to keep Persian Gulf waterways open to oil tankers, after an Iranian Revolutionary Guards commander vowed to disrupt global oil trade if the US prevents Iran from exporting its own oil.
Capt. Bill Urban, a spokesman for the US military’s Central Command, said that American sailors and its regional allies “stand ready to ensure the freedom of navigation and the free flow of commerce wherever international law allows.”
Iranian Revolutionary Guards commander Ismail Kowsari on Wednesday appeared to clarify Iranian President Hassan Rouhani’s warning of “consequences” if the United States convinces its allies to stop buying Tehran’s oil.
“If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz,” Kowsari said, according to the Young Journalists Club (YJC) website.
Rouhani said Tuesday that regional oil supply could be jeopardized if the US continues to pressure Iran.
“It would be meaningless that Iran cannot export its oil while others in the region can. Do this if you can and see the consequences,” he said according to an English-language report of his statements provided by Iran’s Press TV.
When pressured in the past, Iran has threatened to close the strategic Strait of Hormuz, through which one-third of the world’s oil supply passes.
Since the US pulled out of the nuclear deal with Iran, known officially as the Joint Comprehensive Plan of Action, Washington has been pushing allies to cut oil imports from the Islamic Republic altogether by November.
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The Trump administration vowed Monday to stick with its pressure campaign against Iran, affirming its strategy to change Tehran’s behavior by gutting its oil revenue and isolating the country globally.
“Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue on crude-oil sales,” said Brian Hook, the State Department’s director of policy planning, at a briefing with reporters.
He also suggested, however, that there would be some wiggle room to allow some countries that import Iranian oil to avoid immediate sanctions, once they are set to be re-imposed come November 4.
“We are prepared to work with countries that are reducing their imports on a case-by-case basis, but as with our other sanctions, we are not looking to grant waivers or licenses,” Hook said, in comments that were seen as a softening of the United States’ prior demands.
Iran is OPEC’s second-largest crude exporter with more than 2 million barrels a day.
Rouhani has asserted that Iran will not buckle under US pressure and urged dialogue to resolve the differences between the nations.
“Iran’s logic has not changed, one party without logic has left the Joint Comprehensive Plan of Action with the goal of putting pressure on the Iranian nation,” he said Tuesday.
“We told all our foreign parties that if they speak to the Iranian nation with the language of logic and respect, then we can get problems solved… and that threats, pressure and humiliation will never work against the people of Iran,” he said.
Notable countries that import Iranian crude include Turkey, India, China and South Korea.
Since a US State Department official first told reporters on June 26 that the US was preparing to ask allies to cut their oil imports from Iran, the price of US crude jumped more than 8 percent.
Trump subsequently expressed concern about oil prices last week, announcing in a tweet that he and King Salman of Saudi Arabia had agreed to raise daily oil production by 2 million barrels.
Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference…Prices to high! He has agreed!
— Donald J. Trump (@realDonaldTrump) June 30, 2018
“Prices [too] high!” he said. “He has agreed!” It is not clear when that agreement will begin implementation.
Eric Cortellessa contributed to this report.
