The oil weapon and Iran

In an address to the Iranian nation last weekend, Supreme Leader Ayatollah Ali Khamenei referred to the security of energy supplies in the Persian Gulf region being affected in the event of “the slightest mistake over Iran” made by the United States. This subsequently prompted intense speculation about whether Iran would use the “oil weapon” to fend off pressure being placed on the Islamic Republic over its nuclear program.

Would Iran withhold crude-oil exports or perhaps target oil tankers in the Persian Gulf in response to US air strikes on Iranian nuclear facilities?

Similarly, in the wake of last week’s conditional offer by the US to join in on negotiations with Iran, speculation is mounting on what kind of action the United Nations Security Council would take if talks irreparably break down between UN permanent members and the Islamic Republic. Will an embargo on Iran’s oil exports be implemented or, alternatively, will exports of gasoline to Iran be banned?

It’s hard to get around the energy equation to the current standoff given the existing high-oil-price environment. Iran is the second-largest producer in the Organization of Petroleum Exporting Countries (OPEC) and an oil power in the Persian Gulf, a region with nearly two-thirds of the world’s crude-oil reserves.

Asia Times