Argument: Risks of a nuclear Iran will raise oil prices
- The Nonproliferation Policy Education Center argues on 9/13/04 that, "A nuclear-ready Iran could be emboldened to manipulate oil prices upward. It might attempt this either by threatening the freedom of the seas (by mining oil transit points as it did in the l980s or by threatening to close the Straits of Hormuz) or by using terrorist proxies to threaten the destruction of Saudi and other Gulf state oil facilities and pipelines... Iran has already deployed anti-shipping missiles at Qeshm, Abu Musa Island and on Sirri Island, all of which are in range of shipping through the Strait. It has also occupied and fortified three islands inside the shipping lanes of the Strait of Hormuz –Abu Musa, The Greater Tunbs and the Lesser Tunbs. Given that one-fifth of the world’s entire oil demand flows through the Straits (as well as roughly a quarter of America’s supply of oil) and no other nation that has fortified its shores near Hormuz, an Iranian threat to disrupt commerce there would have to be taken seriously by commercial concerns (e.g., insurers and commodity markets) and other nations."