FACTBOX-The Strait of Hormuz, Iran and the risk to oil

(Reuters) – A cargo ship contracted by the U.S. military fired on an Iranian vessel in Gulf waters on Friday, raising tension between Washington and Tehran in a region vital to world oil shipments.

In January, the United States said Iranian boats aggressively approached three U.S. navy battle ships, warning them they would explode in minutes. Iran has said it was a routine contact.

Analysts say Iran, OPEC’s second largest crude producer, could seek to impede traffic through the strategic waterway if the United States resorts to military action against the Islamic Republic over its disputed nuclear programme.

Reuters