Tuesday, October 8, 2019

Iran, The Strait Of Hormuz And Global Oil Supply


How Iran Could Try to Shut off the Global Oil Supply





President of Iran Hassan Rouhani threatened to close the Strait of Hormuz in response to potential sanctions that could be levied upon Iranian oil exports, threats which were echoed by the Islamic Revolutionary Guard Corps (IRGC). 

President Donald Trump has given countries until November 4, 2018, to stop importing petroleum from Iran. This wide-scale ban is part of a new campaign of confrontation and pressure against the Islamic Republic. This demand comes on the heels of the U.S. departure from the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, which was signed in 2015.

During negotiations, the JCPOA was marketed as the only option for curtailing Iran’s nuclear program short of war. Supporters of the deal routinely cited an increased risk of war in their arguments against exiting the deal and Rouhani’s statement, on the surface, appears to confirm such concerns. But how seriously should these threats be taken?

Iran threatening to close the Strait of Hormuz is nothing new. In fact, as recently as 2012, the Obama administration had its own confrontation with Iran over the latter’s nuclear program. Iran threatened to close the Strait and carried out military exercises in the area, drawing a major United States, British, and French deployment in response. But a year later, both sides resorted to negotiations that led to the JCPOA.


Eighty-five percent of Iran’s imports come through the strait, and the oil exports so crucial to the Iranian government’s solvency mostly flow out of it. Iran would be cutting off its own lifeline if it closed the strait, and it would have to live on its already dwindling currency reserves. Iran would also be inviting attacks on its own oil facilities by vengeful neighbors, and it would isolate itself internationally.
So, in contemplating any Strait of Hormuz closure scenario, it should immediately be noted such a move by Iran amounts to one of desperation, employed only in a situation in which Tehran sees no other way out of its predicament. Therefore, a Strait closure is unlikely, the United States is well-aware of this, and the Iranian leadership probably realizes Washington can call its bluff any time. So why does Tehran continue to make such threats?
By threatening to close the vital waterway linking the oil-rich Persian Gulf with the world, through which approximately a third of the world’s petroleum is ferried, Iran stokes fears of war and economic crisis. This not only raises gas prices in anticipation of supply disruptions, but it also influences world opinion towards the direction of de-escalation, which would pressure the United States to back away from its own red lines. Given the number of countries that rely on Middle Eastern oil, including that of Iran, Tehran can craft a damning narrative that shows that the United States is generating a crisis to the world’s detriment.

Iran’s closure of the Strait would not involve employing its naval forces to physically occupy the waterways in a conventional sense. Rather, it would make the Strait impassable utilizing an Anti-Access/Area-Denial strategy (A2/AD) strategy. For Iran, mines would form the centerpiece of this strategy to turn the choke point into a no-go zone. Afterwards, it can use land-based anti-ship missiles (ASMs) to prevent clearance operations or to directly target enemy warships and civilian shipping. Should Iranian leadership deem it necessary to deploy naval forces, the IRGC possesses a large fleet of small fast-attack craft. Though lightly armed, the craft can prove a menace to conventional warships, via the use of “swarming” tactics to overwhelm adversaries and employ “hit-and-run” attacks that are notoriously difficult to counter. On a higher level, Iran could target United States and allied military facilities in the region or even civilian population centers with ballistic missiles as a means of deterrence.





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