With almost complete sanction on Iranian Banks – It is harder then before to conduct business.
The EU and others are in the process of imposing Sanction on Iranian Oil
No oil sales – no money – Cost of living has increased, along with all the other problems that this will cause.
Now Iran is in the threatening Stage – Any imposition of Oil sanctions they state will result in the closure of the Strait of Hormuz.
A long term oil embargo will bankrupt the Thugocracy.
Needless to say this will result in a War.
Finally sanctions that may cause Iran to sit down and cooperate on their Nuclear Programs.
Now if oil sanctions are imposed 80% of Iranian Revenue is gone. The political difficulties from this will be immense for the Thugocracy -
U.S. Fifth Fleet: Iran disrupting oil exports through Strait of Hormuz 'will not be tolerated' | News | National Post
The U.S. Fifth Fleet said on Wednesday it would not allow any disruption of traffic in the Strait of Hormuz, after Iran threatened to stop ships moving through the world’s most important oil route.
“Anyone who threatens to disrupt freedom of navigation in an international strait is clearly outside the community of nations; any disruption will not be tolerated,” the Bahrain-based fleet said in an e-mail.
Iran, at loggerheads with the West over its nuclear program, said on Tuesday it would stop the flow of oil through the Strait of Hormuz in the Gulf if sanctions were imposed on its crude exports.
“Closing the Strait of Hormuz for Iran’s armed forces is really easy … or as Iranians say, it will be easier than drinking a glass of water,” Iran’s navy chief Habibollah Sayyari told Iran’s English-language Press TV on Wednesday.
“But right now, we don’t need to shut it …,” said Sayyari, who is leading 10 days of exercises in the Strait.
Analysts say that Iran could potentially cause havoc in the Strait of Hormuz, a strip of water separating Oman and Iran, which connects the biggest Gulf oil producers, including Saudi Arabia, with the Gulf of Oman and the Arabian Sea. At its narrowest point, it is 21 miles across.
But its navy would be no match for the firepower of the Fifth Fleet which consists of 20-plus ships supported by combat aircraft, with 15,000 people afloat and another 1,000 ashore.
A spokesperson for the Fifth Fleet said in response to queries from Reuters that, it “maintains a robust presence in the region to deter or counter destabilizing activities,” without providing further details.
A British Foreign Office spokesman called the Iranian threat “rhetoric,” saying: “Iranian politicians regularly use this type of rhetoric to distract attention from the real issue, which is the nature of their nuclear program.”
US Warns Iran Against Closing Hormuz Route - TIME (external - login to view)
www.nytimes.com/2011/12/28/wo...ref=middleeast (external - login to view)
U.S. warns Iran that oil disruption 'will not be tolerated' - The Globe and Mail
The U.S. warned Iran Wednesday that it will not tolerate any disruption of naval traffic through the Strait of Hormuz, after Iran's navy chief said the Islamic Republic is capable of closing the vital oil route if the West imposes new sanctions targeting Tehran's oil exports.
Iran's Adm. Habibollah Sayyari told state-run Press TV that closing the strait, which is the only sea outlet for the crucial oil fields in and around the Persian Gulf, “is very easy” for his country's naval forces
Some more research links.
belfercenter.ksg.harvard.edu/...7_Talmadge.pdf (external - login to view)
Closing Strait of Hormuz not so easy for Iran: analysts | Reuters (external - login to view)
Will Iran Block the Hormuz Strait? | Foreign Policy Journal (external - login to view)
Iran Viewpoint: Strait Of Hormuz As Iran (external - login to view)