Post Carbon Fellow Tom Whipple was quoted in this article about the escalating geopolitical crisis around Iran's nuclear program and the prospect of Iran taking action to block the Strait of Hormuz.
From the article:
"The whole world would come to a halt - from China to Japan to Tierra del Fuego. There's a lot of oil that comes out of there, and that's their one trump card," said Tom Whipple, an energy expert and former CIA analyst.
This, said Whipple, could become extremely messy. "Something like 16 million barrels of oil go through the Strait each day now. No pipeline in the world can handle anywhere near that now."
If Iran tries to block or close the Strait, Whipple said he suspected that "the whole world would gang up on Iran - even the Chinese. They're getting a lot of Saudi oil, and their economy would go down the tubes very quickly - as would Europe," said Whipple.
Additionally, shutting down the Strait of Hormuz would have a disastrous effect on Asian economies.
"More than 50 per cent of the oil that goes through the Strait goes to the Asian market - it's going to China, Japan, South Korea, rather than the US market," said Dourian.
"The knock-on effect will be huge."