The talk of the closure of the Strait of Hormuz by the Iranian authorities was brought back after US President Donald Trump announced cancelation of the exemptions for the purchase of Iranian oil without sanctions.
The American declaration was met by Tehran with an escalation in the strait, threatening to shut it if it is prevented from using it in the export of oil.
According to the American Energy Information Agency, the Strait of Hormuz provides access to nearly 40% of global energy exports, with one tanker passing every 5 minutes.
In 2016, a record 18.5 million barrels per day (bpd) of oil ran through the Strait of Hormuz, according to estimates by the US Energy Information Administration (EIA). In that year, world demand for oil reached 96.6 million barrels per day, according to the Paris-based International Energy Agency.
If Iran closes the Strait of Hormuz, it will not only raise oil prices, but will cut the world's largest nerve, and this will be an indescribable shock to Europe and America.
