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Iran’s Revolutionary Guard Says It Won’t Block Strait of Hormuz

IRAN

Commodore Alireza Tangsiri, head of Iran’s Islamic Revolutionary Guad Corps naval forces said that Iran has the option of disrupting the Strait of Hormuz in the Persian Gulf amid rising tensions with Israel but chooses not to.

  • Around 20% of global oil supply passes through the Straits of Hormuz, according to Reuters’ calculations, around 20.5m b/d. Around 20%, or 80m mtpa of LNG also passes through the Strait.
  • Iran won’t act hastily on emotions and will deliver “slap” to Israel in due time, he added.
  • He also added that the Israeli relationship with UAE is a threat to Iran and its interests.
  • Concerns of wider conflict in the Middle East between Israel and Iran have added a geopolitical risk premium to oil since the Oct. 7 attacks.
  • While the comments on keeping the Straits of Hormuz open are a positive sign, the market will be concerned about wider escalation and whether Iran’s current policy could change if hostilities worsen.

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