Following U.S. Strikes on Iranian Nuclear Facilities on Saturday, the Iranian Parliament Voted to Close the Strait of Hormuz, One of the World's most Critical Oil Transit Chokepoints. Any Final Decision on Retaliation, however, will Rest with the Country's Supreme National Security Council and Leader Ayatollah Ali Khamenei. The Parliament Vote merely Advises Him of the Option to Pursue.
The U.S. Strikes on Three Iranian Nuclear Sites, dubbed "Operation Midnight Hammer" in Isfahan, Fordow, and Natanz, marks the First Direct Involvement of America,in the Escalating Crises between Iran and Israel. The action has received Backlash, with many citing the Lack of Congressional Approval for the Military move.
The Strait of Hormuz is a narrow Waterway connecting the Persian Gulf to the Gulf of Oman, and the Arabian Sea. At its narrowest point, the Strait is about 21 miles wide, with Two Shipping Lanes that are 2 miles wide in each Direction. Around 20% of Global Oil Trade passes through the Strait. Some Experts have said that if Iran were to Cut-Off Access to the Strait, it could spike Oil Prices by 30%-to-50% immediately, with Gas Prices Rising by as much as $5 per gallon.
During the Iran-Iraq War in the 1980s, Iran targeted Oil Tankers and Oil Loading Facilities. These Actions did Not fully Block the Strait, but caused Sharp increases in Shipping Insurance Premiums and Delayed Maritime Traffic.
Iran has long held that it can Shut Down the Strait of Hormuz, which it has held onto as a Last Resort for Escalation. Closing" the Strait would mean making it Impossible to Navigate, with the Iranian Navy possibly laying down Mines to deter Ships or the Military Shooting Missiles to Harass Tankers.
"The Parliament has reached the conclusion that the Strait of Hormuz should be closed, but the final decision in this regard lies with the Supreme National Security Council," Revolutionary Guards Commander Ismail Kowsari, Member of the National Security Commission of the Parliament, announced on Sunday.
The Vote took place Sunday following "Operation Midnight Hammer," in which Seven B-2 Stealth Bombers flew into Iran and dropped 14 Massive Ordinance Penetrator (MOP) Bombs on Two of Iran's Nuclear Sites, including the Fordow site. A Third Site was hit with Tomahawk Submarine launched Cruise Missiles.
Trump (R) said the Sites had been Obliterated by the U.S. Operation, which included 125 Aircraft overall in an Operation that took 25 minutes to complete. However, Trump's Joint Chiefs of Staff Chairman General Dan Caine said Sunday, that it will take some time to Assess the Full extent of Damage to the Sites. The MOP Bombs used to Hit the Sites had never been Deployed in a Combat Scenario, prior to Saturday's Strikes.
Spencer Hakimian, Founder of Tolou Capital Management, wrote on Twitter, on Saturday: "There are close to 50 large oil tankers scrambling to leave the Strait of Hormuz right now. Looks like the oil industry is expecting the Strait to be blockaded in the coming days."
Khamenei will need to Approve any Final Action that would see a "Closure" of the Strait, which can happen as soon as Sunday, now that the Parliament has Approved such Measures.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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