Wednesday, December 28, 2011

Iran First Vice President repeats threat to close oil shipping lane over nuclear arms row

Iran says it will stop the flow of oil through one of the world's most important oil shipping lanes over threats to impose foreign sanctions on its crude exports.

In a move which could trigger military conflict with economies dependent on Gulf oil, Iran said 'even one drop of oil cannot flow from the Strait of Hormuz' if sanctions are imposed on the country's 'lifeblood' oil sector.

Western tensions with Iran have increased since a U.N report claimed last month that Tehran appears to have worked on designing an atomic bomb.

Iran strongly denies this and insists it is developing nuclear energy for peaceful purposes.

The possibility of imposing sanctions on Iran has divided U.N nations.

Iran has defiantly expanded nuclear activity despite four rounds of U.N. sanctions meted out since 2006 over its refusal to suspend sensitive uranium enrichment.

Many diplomats believe only sanctions targeting Iran's lifeblood oil sector might be painful enough to make it change course, but Russia and China - big trade partners of Tehran - have blocked such a move at the United Nations. Read More