Iran Threatens US with Military Actions

Reuters Photo

General Ataollah Salehi, Iran's army chief, issued an ultimatum  promising swift action if the USS John C. Stennis, pictured above, returns to the Persian Gulf.  His threat came at the close of 10 days if Iranian navy exercises in the Strait of Hormuz, where 35% of seaborne traded oil and 20% of the world's oil passes daily, according to http://eia.gov, which cites Clarkson's statistics.

Iran's hardline stance appears connected to the precipitous fall of Iranian currency against the  US dollar.The value of Iran"s rial has decreased 40% against the dollar over the last month and hit a record low earlier today. President Barack Obama has signed into law tough new sanctions that would ban dealings with Iran's Central Bank, although the law has not yet been enacted.  By the end of January, the EU is expected to impose sanctions that could include a ban on oil imports and a freeze of central bank assets.

China refused to support global sanctions against Iran, but has taken action to protect its financial health. It has demanded discounts on the purchase of Iranian oil.and reduced January's Iranian crude imports by over 50%.  China bought crude from Russia and Vietnam at a premium to offset the decrease.

Many Iranians have responded to the rial's decline by exchanging them for US dollars, forcing some currency trading offices to close.

Ham on Wry wonders what other oil-producing nations in the region plan in the event that Iran carries out its threats. The United States can't act alone in mitigating Iran's negative attitude toward the West, and other Middle Eastern countries stand to suffer losses with Iran's increasingly hostile stance. If ever the need for alternative fuel sources has reached a critical stage, it is now! Iran would have few options, if it faced world sanctions and a growing demand for vehicles powered by something other than gas.  Just saying.