Supply chain horizon scanning: Strait of Hormuz related issues should be monitored
If Iran follows through on its threat to close the Strait of Hormuz it would have a major impact on global supply chains.
Iran threatened last week to stop the flow of oil through the Strait of Hormuz if foreign sanctions were imposed on its crude exports because of its nuclear ambitions; a move that would almost certainly trigger military conflict, says INSIGHT. Many analysts believe that such threats are baseless and that closing the Strait would be economically and politically damaging for Iran. Not only would relations with the West be impacted but also relations with powerful regional powers, such as Saudi Arabia and the UAE. Nevertheless, recent Iranian military activity in the area, a test of a new missile, and warnings to the US Navy that its carriers must stay out of the Gulf, have ratcheted up tensions significantly.
•Date: 10th January 2012 • World/Middle East •Type: Article • Topic: Enterprise risk management