Iran Warns Foreign Naval Forces form Entering Persian Gulf

Iranian President Hassan Rouhani has told his cabinet that protecting security around the Persian Gulf is solely the responsibility of countries in the region and that other nations should stay away.

The United Kingdom is attempting to form an alliance with other European nations to protect ships passing through the Persian Gulf and Strait of Hormuz, a channel that sees 20% of the world’s oil supply pass through it.

West Texas Intermediate graph

Iranian Revolutionary Guards (IRGC) seized a British Ship traveling through the channel on Friday, an apparent tit-for-tat measure after the United Kingdom had previously impounded an Iranian tanker in the Mediterranean which was suspected of intending to deliver oil to Syria’s Assad regime. Such a move is banned by EU sanctions.

Speaking to his cabinet Wednesday, and in a translation subsequently published on Rouhani’s official English language website, Iran’s president said foreign military might from other parts of the world should not send armed ships to the region.

“The main responsibility for protecting the Strait of Hormuz and the Persian Gulf is mainly with Iran and neighbouring countries, and is not the others’ business, and the Iranian nation has always been the protector of the Persian Gulf,” Rouhani said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza