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Iran will not close oil supply route: US analysts
by Staff Writers
Washington (AFP) Jan 18, 2012

China's Wen defends oil trade with Iran
Doha (AFP) Jan 19, 2012 - Premier Wen Jiabao has defended China's vast oil trade with Iran as legitimate while stressing the Beijing government's opposition to Tehran acquiring nuclear weapons.

"China has normal trading relations with Iran, but will not bargain away its principles. We support the UN resolutions related to the Iranian nuclear issue," the Chinese leader told reporters in gas-rich Qatar late on Wednesday.

"China's oil trade with Iran is a normal commercial activity," said Wen.

Wen visited Qatar on the last stop of a Gulf tour that took him to Saudi Arabia and the United Arab Emirates, amid fears rising tensions over Iran's nuclear programme will disrupt world oil supplies.

"I believe that China is not the only country to buy oil from Iran... Legitimate trade has to be protected if global economic chaos is to be avoided," Wen said according to a Chinese foreign ministry transcript.

"China firmly opposes the development and possession of nuclear weapons by Iran, and calls for the establishment of a nuclear-free zone in the Middle East," he added.

Wen's comments come as the West ups the stakes in its standoff with Iran, threatening to impose sanctions on the oil exports of the Islamic republic, which provides 11 percent of China's oil imports.

Iran is the third largest provider of oil to China. Qatar and the UAE, although both major oil-producing states, do not yet figure among the top 10 oil exporters to the Asian economic giant.

On his first stop in Saudi Arabia, Iran's arch-rival in the Gulf, Wen presided over the signing of energy deals with China's top oil provider. Deals were also inked on his second stop in the UAE.


Iran has no desire to carry out its threat of closing the Strait of Hormuz to head off fresh Western economic sanctions because doing so would damage the regime's own interests, US-based experts say.

Iran is brandishing the vital shipping route -- a chokepoint for one fifth of the world's traded oil -- as a pawn in the battle being played out against the United States and other leading nations over Tehran's nuclear ambitions.

But the potential effects of taking firm action has left Tehran blowing hot and cold on the issue and could be part of a wider series of threats that Iran is willing to make to defend its ground, according to analysts.

"Iran's perception is that the US and its allies are waging economic warfare on the Islamic Republic and that the regime is at risk -- their ability to export oil has always been a red line for them," said Michael Eisenstadt, a senior fellow at the Washington Institute for Near East Policy.

But "there are all kinds of reasons why Tehran would probably not close the strait as long as they have the ability to export some oil."

"They also import almost all their products through the ... Gulf, so they would really be a self-inflicted wound on them if they were to do this," Eisenstadt said.

"A more likely possibility is that Iran might engage in harassment of US forces, maybe a covert harassment campaign," he told a conference hosted by the Atlantic Council in Washington on Tuesday.

The killing of an Iranian nuclear scientist, which Tehran blamed on the United States and Israel, has added to an already heated diplomatic battle over Tehran's nuclear ambitions -- which it insists are for non-military purposes.

Iran's apparent openness to resuming talks with the United States, Russia, China, France, Britain and Germany, also indicates it does not intend to shut down the strategic trading route, according to Eisenstadt.

The talks last took place in Turkey in January 2011.

But the prospect of new Western sanctions -- the EU could as early as Monday impose new penalties on Iran -- has increasingly seen Tehran use the possible disruption of oil supplies as a bargaining chip.

Mark Gunzinger, senior fellow at the Center for Strategic and Budgetary Assessments, a think-tank focused on US national security, said the situation in the Gulf was a major concern.

"Closing the strait cuts both ways, their economy is very dependent on energy exports as well, as well as imports of refined energy," said Gunzinger.

"I don't personally take what he (Iranian President Mahmoud Ahmadinejad) says seriously, but you do have to take seriously their (nuclear) ambitions.

"The trend line is worrisome. Ten years from now you might not want to put two aircraft-carriers right in the ... Gulf."

The threat is just one tool in Iran's box to deter a US missile strike on its nuclear facilities, according to Bruce Riedel, a former CIA officer.

"The Iranians, I think, very deliberately use the specter of closing the Strait of Hormuz as a codename for something much bigger," said Riedel, a senior fellow at the Saban Center for Middle East Policy at the Brookings Institution.

"They're talking about all the things they could do on the southern littoral of the Gulf, from missile strikes into Abu Dhabi, into refining centers," or supporting terror groups that could hit Thailand, Lebanon or the United States, Riedel said, noting that US efforts in Afghanistan could also suffer.

"They don't have to close the Strait of Hormuz to make sure that the price of gasoline in the US goes through the roof," Riedel said.

"The Iranians are superbly placed to make the war in Afghanistan, which is already difficult, impossible.

"If there is a second country providing sanctuary and safe heaven for the insurgency, the chances of success on the timeline the administration has laid out is virtually nil," Riedel said.

"They can turn out the light literally on half of Afghanistan whenever they want to," he added.

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Iran has never tried to close oil supply route: minister
Ankara (AFP) Jan 19, 2012 - Iranian Foreign Minister Ali Akbar Salehi denied Thursday that Tehran had ever tried to close the Strait of Hormuz, the vital shipping route at the centre of increasing international tensions.

"Iran has never in its history tried to prevent, to put any obstacles in the way of this important maritime route," he said in an interview with NTV television during a visit to Turkey.

Iran threatened in December to close the narrow and strategic waterway -- a chokepoint for one fifth of the world's traded oil -- in the event of a military strike or a severe tightening of international sanctions.

Its threat set up a tense standoff with the United States which sent a second aircraft carrier to the region as Tehran announced new naval manoeuvres in the Strait within the next few weeks.

"We want peace and stability in the region... But the Americans... want to run certain countries from our zone," Salehi said. "I appeal to all countries of the region, please don't let yourself be drawn into a dangerous position."

He also said Washington should be willing to hold talks with Tehran without preconditions.

Turkish Foreign Minister Ahmet Davutoglu meanwhile, reiterated that Iran and six Western powers were ready to restart talks on Tehran's nuclear drive which were suspended a year ago.

"Both parties have expressed their wish to meet and to resume discussions," he said at a press conference with Salehi.

"Now it is up to the parties to decide on a place and date," the minister said, confirming that Turkey was ready to host the talks. The last round was held in Istanbul in January 2011.

He said Turkey believes a rapid resumption of negotiations between Iran and the five permanent members of the Security Council, plus Germany, would help to ease tensions on the nuclear dispute.

Tehran has repeatedly said it is willing to resume the talks.

But the office of EU foreign policy chief Catherine Ashton, who represents the world powers, has said it is still waiting for Tehran to formally respond to a letter sent in October offering to return to the discussions.

During the 1980s war with Iraq, Iran's military in 1987 and 1988 laid mines in the waters of the Strait of Hormuz and the Gulf to make the channel hazardous for oil tankers from Iraq.

In April 1988, a US warship struck one of the mines and nearly sank. The US military subsequently launched Operation Preying Mantis, destroying two Iranian oil platforms and several vessels.

Mines left over from that conflict, and from the 1990-1991 Iraqi occupation of Kuwait, were being picked up in the coastal waters in the northern Gulf up to a decade later.



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