as long as iranian oil keeps flying to china or whatever destinations, the block of the strait of hormuz will never happen for it has been pointed out iran depends on oil exports and the sate of the strait of hormuz is crucially important to iran. >> the strait is the only water way to the open ocean for many areas around the persian gulf. >> reporter: i reached the strait of hormuz by saying up the coast of oman. the persian gulf was busy with oil tankers from all over the world. oman has facilities near the strait of hormuz. omany boats were on patrol. iran conducted naval exercises in the area late last month. iran has also test launched its missiles to show off. the united states has deployed a secondary craft carrier in the area. countries around the gulf have built up their forces in case of tension with iran. the united arab emirates signed a contract to buy the latest u.s. missile interceptors. saudi arabia signed a deal to buy more f-115 fighters from the united states. >> they're increasingly buying more arms as well as their recent experience in libya has taught them how to us

even if strait of hormuz is open, any more military tension will hit the company's business. >> closure of the strait would create a situation beyond any company's control. an accidental incident could trigger something that nobody wants to happen. tension in the west over the iranian nuclear program is at the critical limit. the central artery for oil global transport is at stake. >> all of this is driving up oil prices. ai joins us for that story. good morning. >> good morning to you. the eu's approval of the embargo against iranian oil is effecting oil markets. crude oil markets soared monday, topping $100 a barrel. buy orders gained momentum. the rise came on mounting concern the eu's decision will fuel tensions over the strait of hormuz, a key waterway for oil tankers. crude oil futures dropped to the $75 level per barrel in october, after europe's credit problems dampen investors' risk appetite. oil prices rebounded on speculation demand would rise on the back of a positive u.s. economic outlook. >>> separately, the head of the international monetary fund, christine will he guard

like that i think they're trying to work to work things out so well that iran is certain cyclo strait of hormuz over the sanctions walk enough i could this have on the global economy the global market closure of the straits of hormuz would be very safe but also the kind of comments coming out of iran we could go there were a little bit more aggressive but in the past couple of days they have softened a little bit i don't think they're talking a simple lately of really closing the straits of hormuz they're more saying that they have the capability to close them. having the capability to actually close them is a little bit different but if the iranians were to close the straits of hormuz or if the passages seem to run the effects of the global view very severe not just for europe but for asia for the entire planet elsevier what i would talking about here . depending on the length of the closure you could see prices rise in the one fifteen higher. but we shouldn't forget that some of these things are really happening in the one nine hundred eighty s. because in the one nine hundred eighty s. there

in retaliation, iran has threatened to close the straits of hormuz through which 1/5 of the world's crude-oils transported. >> tankers with oil from the gulf heading today towards the strait of hormuz and the open sea beyond. immediately after the european union decision to stop buying iranian oil, some politicians inside iran were threatening to block the gulf. these waters are vulnerable. this is the strait of hormuz. if the weather were a bit better, you could see the mountains of iran just over there. through this narrow strip of water passes 1/5 of all the world oil supplies. it is not surprising that iran is tempted to cut off this artery. it is no surprise either that the western world cannot let it happen. yesterday the massive uss abraham lincoln that can hold as many as 90 aircraft came through the strait of hormuz with british and french warships and other american ships. iran carried out a 10-day drill in an effort to show it could block off the waters if it chose. that might look like cutting off its nose to spite its face. plenty of their own exports of oil come between here. if

official has already said that tehran could definitely close the vital all transit route and the strait of hormuz because of the all embargo today we're seeing stories another american warship a french warship a british naval destroyer all of that now heading into the strait of hormuz if iran goes ahead with the threat to shut down the waterway what's next. if it were to go ahead with that threat i think the military some sort of military strike would have to be in order that would be too much of a provocation to go unnoticed but i for that very reason i find it extremely unlikely that iran is actually going to start the hostilities in that manner i think it's far more likely that they would use that if if military intervention had already started in iran or if the sanctions had become economically unsupportable but i find it very difficult to believe that iran will actually use that sort of nuclear option so to speak i don't realize they have been certainly escalating things in terms of the saber rattling recently but i think that's really more of a putting their their cards on the table to try

>> are we going to see more strait of hormuz incidents? >> i am afraid so. they have told us we cannot sell aircraft in and out of the strait of hormuz. i think it is dangerous to be beyond the strait of hormuz, close to the territorial waters for the simple reason that iran has misfile sites up and down the coast, and the entire east coast is iran. we keep forgetting it is called the persian gulf. >> i know. this morning, i was thinking there is a bright side to this economic crisis we are going to, -- going through, or have been through, if you believe some people -- i think it is going on -- that is we realize we're all of the sameboat. in this situation, even countries like china, russia, they might have different takes on the situation, but nobody is interested in sinking the global baot. >> how is "the washington post" covering this? >> it has been a patchwork of freelancers and stringers in addition to regular correspondence, and it has worked out satisfactorily so far. >> and streets are about 40 miles. >> they are separated by 1 mile. >> you are look

naval commanders are even planning another round of military exercises in the strait of hormuz. nhk reports from tehran. >> reporter: the strait of hormuz is located at the mouth of the persian gulf. it's narrow, stretching just over 30 kilometers in width. it serves as a main artery for crude oil transports. one-third of the world's oil tankers pass through the strait. iran's navy conducted massive military drills near the strait late last year through early this year. during the period, it test fired new types of missiles. the country plans to carry out another round of exercises in the same area next month involving its elite revolutionary guards. all this is taken to mean iran is threatening to close the strait of hormuz if western nations seek to block crude oil exports from iran. >> translator: it's easier for our navy to close the strait of hormuz than to drink a glass of water. >> reporter: in response, the u.s. navy's 5th fleet said it would launch a counter-attack if freedom of navigation in the strait is threatened. the fleet is based in bahrain, which lies across the

of production you eat about to start a pipeline that will circumvent the straits of hormuz again that's right about one point five million barrels a day so taken together that's still a small proportion of the oil that would be lost if the straits of hormuz were to be closed. let's have a look at the stock markets now european equities headed higher in early trading or news the boring course death options on thursday week new data for the u.s. economy ruin the sentiment in london with the footsie crossing the line just in the rid of a managed to stay afloat closing almost half a percent higher as you can see their markets closed here in moscow continuing a lot of the week for the l.t.s. and my six indices are suffering contagion from world economic fears with both barely managing to end the day in the black. this level. some of the. six today energy majors have lost gains from earlier in the week. plans to spend five point seven billion dollars on the sort she winter olympics in twenty fourteen take also fell natural gas production grew forty one percent from last year after versus exhi

as it conducts massive military drills in the strait of hormuz iran is threatening to block the shipping lane if the west imposes sanctions. nhk world reports from tehran of what's behind the country's hard line stance. >> the strait of hormuz is located at the mouth of the persian gulf. it's narrow, stretching just over 30 kilometers in width. it serves as main artery for crude oil transports. one-third of the world's oil tankers pass through the strait. iran's navy conducted massive military drills near the strait late last year through early this year. during the period, it test fired new types of missiles. the country plans to carry out another round of exercises in the same area next month involving its elite revolutionary guards. all this is taken to mean iran is threatening to close the strait of hormuz if western nations seek to block crude oil exports from iran. >> translator: it's easier for our navy to close the strait of hormuz than to drink a glass of water. >> reporter: in response, the u.s. navy's fifth fleet said it would launch a counterattack if freedom of navigation in

and the persian gulf is concerned, we believe that the strait of hormuz should be the strait eace and stability. >> rose: and open? >> and open. and there is no decision to block and close the strait of hormuz. unless iran is threatened seriously, and somebody wants to tighten the noose. >> rose: what would you characterize as a serious threat? >> we have been trying to work with our neighbors in the region to maintain as i mentioned the peace and stability in the persian gulf, especially for the strait of hormuz which is in the benefit of iran and its neighbors and the who world. but if foreign powers want to create trouble in the persian lf, of course, it would be the right of try, iran as ll as the rest of the countries in the region to t to defend themselves so in my view, if you a me the iranian strategy is not to close the strait of hormuz. but naturally, any nation if it is under serious threats by foreign powers, they will defend themselves. >> rose: what would be a provocation that might even lead you to consider that and if you consider that, have you considered how

the obama administration warning iran supreme leader that closing the strait of hormuz is a red line.arni iran through a secret channel of communication. the strait of hormuz is the most vital oil shipping lane in the entire world. it would block a fifth of the world's daily i'll trade. a blockade has arrived in the arabi arabian sea. the pentagon denying the shuffling of a navy fleet. but the defense secretary leon panetta says the u.s. has to be ready. >> clearly there are those areas that, for us, are red lines. number one, we cannot allow them to develop a nuclear weapon. that's a red line. number two, we cannot tolerate iran blocking the straits of hormuz. and that's the red line. barbara starr is live at the pentagon. we're kind of caught here on these secret channels of communication that are happening. what is the white house saying? >> well, there hasn't really been any reaction from them about that particular story, zoraida. but, you know, i don't think it's too surprising that the american government would really try and find every channel it could to reach out to iran and

we are on the water with a rare look the at strait of hormuz. right there at the center of the war of words between the u.s. and iran. >>> everything must go. the police station, city hall, the cemetery, all for sale. it's the sad state of a once-great american city that shares its name with a great automobile and they're resorting to the unthinkable to stay alive. >>> and the birds. a real-life scene straight out of hitchcock giving the folks in one small town a lot of sleepless nights. "nightly news" begins now. captions paid for by nbc-universal television >>> good evening. the next contest in the wild run for the nomination in the gop is in florida. there have been two televised debates there. tonight there is fresh evidence voters are making up their minds. the trend lines are moving away from newt gingrich, who won the last primary, and toward mitt romney. romney is now getting a lot of help from members of the republican party who think newt gingrich as the nominee going up against president obama in the fall is a bad idea. it's getting ro

i think that the feeling on the straits of hormuz is that we would be able to reopen the straits but at considerable cost and with a considerable amount of not national tension. so oil prices would go up to $200, $250 a barrel. it would be a very, very complicated thing. now i think that the iranians understand that and they are backing down and they understand that they're closing the straits of hormuz would be madness for them because it would shut down effectively all of iran's imports and exports. it would make it impossible, any kind of iranian trade them would be the country most hurt by it. but we are also ratcheting up the pressure in a way where it isn't clear what the end game is here. iran is not going to cry uncle and simply say, all right, we surrender. >> and when the administration talks more tough on this side, we know we have a president of the united states and defense secretary. we have one voice of the government. in iran, there is always the question. mahmoud ahmadinejad have the full support of the ayatollahs and vice versa. when you have a warning and a blunt wa

warship in the strait of hormuz. they closed to within 500 yards, ignoring whistle and voice signals asking their intentions. a second video shot the same day shows more speedboats harassing a u.s. coast guard cutter inside the persian gulf. u.s. officials call this naval hot dogging routine posturing which has happened many times before. but a pentagon official says "it got our attention because of iran's public threat to close the strait of hormuz." a threat which defense secretary panetta responded to in blunt and unmistakable language. >> we cannot tolerate iran blocking the straits of hormuz, and that's a red line. >> reporter: just in case there is any part of that the iranians don't understand, secretary of state clinton said the same response has been delivered to them privately. >> it has caused us and many of our partners in the region and around the world to reach out to the iranians to impress upon them the provocative and dangerous nature of the threats to close the straits of hormuz. >> reporter: most o

could they glove the strait of hormuz? > first and foremost i asked the minister how much of your oil goes through the strait of hormuz. half goes through. he says we have alternatives, that means taking oil through pipelines across the country to the red sea and distributing there. he did say, quote, unquote, i personally do not believe the strait, if it were shut will be shut for any length of time. basically, this is a quote again, the world cannot stand for that. this is not a message only from saudi arabia but obviously coordination taking place that they do want to protect the waterways of the straits of hormuz and it sounds like this is a coordinated effort between the gulf cooperation council states, particularly saudi arabia and those in the west who suggest sanctions going forward. i had an interview with the u.n. secretary general today. that they have to abide by international laws and the straits of hormuz cannot be shut off, to transport particularly oil. >> you can hear more from join on "global exchange," 5:

iran has the conventional capability to close the strait of hormuz but for a very limited point of a symmetrical terms it can create problems but i think the main message that iran is sending here is political because it knows that if it's going to close of the strait of hormuz of course it's going to. it's. already warning against iran closing of the street before him with what they're trying to do here is to just draw the red light and say to america and the european union that they're willing to retaliate in any way possible and gets what they perceive as a clear economic warfare against iran and everyone knows that your. trade and its ability to really. and according to even make it more difficult for you when you talk about issues over here for example before we get into the implications of china and china being the third largest consumer export oil in terms of retaliation we've got a u.s. aircraft carrier in the region in the gulf pritish frigate as well just days ago during that big naval test picture show of strength as well who is provoking who. of course i mean it always ta

he made no mention of threats from iranian leaders to close the strait of hormuz. millions of barrels of oil pass through the water way every day. nato secretary general urged iran to keep shipping lanes open. >> i urge the iranian leadership to live up to its international commitments including stop the enrichment program and ensure free navigation in the strait of hormuz. >> he said nato leaders have no plans to intervene. >>> the united states says it will downsize its army while maintaining or boosting troop levels in the asia pacific region to counter china's military buildup. >> it's something that obviously will cause some pain, but at the same time we recognize that defense has to play a role in dealing with the national deficit. >> at a news conference on thursday, defense secretary leon panetta released a budget plan for fiscal 2013. it features a $6 billion cut from current levels. the obama administration plans to eliminate $490 billion over the next decade. panetta disclosed over the next five years two army brigades would return from europe and the arm

recent months, the dispute has been heating up, with iran threatening to block the strategic strait of hormuz announcement of the new sanctions, an american aircraft carrier, the uss abraham lincoln, passed through the strait and is now stationed off the iranian coast. u.s. defense the promises it will be joined in march by the uss enterprise, which was actually scheduled to be scrapped. the u.s. naval buildup comes on the heels of iranian military exercises. [gunshots] >> it was an ostentatious display of military might. the iranian navy carried out weeks of training in the gulf, giving the world a chance to see their country's armory. iran even threatened to block state -- duplicate the strait of hormuz. such a move could impact seriously on oil supplies. up to 40% of the world's oil passes through here. those threats were a direct provocation to the u.s. the navy's fifthly patrols the region, which is a strategic importance to washington. u.s. iranian relations are characterized by such tit for tat provocations. >> the u.s. is already ratcheted up its sanctions on iran. iran wants to send

a day or so of production you either are about to start a pipeline that will circumvent the straits of hormuz again that's from one point five billion barrels a day so taken together that's still a small proportion of the oil that would be lost if the straits of hormuz were to be closed. the stock market european equities headed higher in early trading or news the boring calls in a you day to control day but weeks new data for the u.s. economy grew in the sentiments in london with the footsie crossing the line just in the red frankfurt however managed to stay afloat closing almost half a percent higher. markets are closed flat in moscow continuing a lousy week for the r.t.s. and my six indices are suffering. contagion from world economic fears with both barely managing to end the day in the black let's have a look at some of the share moves almost six today energy may just have lost games from earlier in the week gazprom is down after announcing plans to spend five point seven billion dollars on the source to winter olympics in twenty forty. also felt its announced natural gas production grew

months we go forward with the oil embargo does iran retaliate do they you know play games in the strait of hormuz. i see less and less ways out of this situation there are less available off ramps to us every time we ratchet up so that remains to be seen there are talks that are supposedly coming up the question is ok are these. oil embargoes sanctions going to be used as leverage at the table are we actually using this as a lever that we can poll to compel iran to cooperate with what the west wants or are these sanctions that are just designed to put pressure on iran for the sake of pressure and really quickly is this another sign that diplomacy is not an option and not on the table and and that war seems to be the only thing that is left on the table. i mean it's not off the table yet but it's going to take some bold initiatives by both sides in the really going to get their house in order in order to pursue real diplomacy jamal thank you so much for weighing in as always a pleasure to have you here that was policy director for the national iranian american council jamal abdi. well as we just d

vent the straits of hormuz again that's right about one point five million barrels a day so taken together that's still a small proportion of the oil that would be lost if the straits of hormuz were to be closed. let's have a look at the markets no oil is first bring the struggling to go over one hundred fourteen dollars a barrel it's up from two week lows early in the week though it's triggered by concerns that an oil workers strike in nigeria and threats of more sanctions against iran nuclear program will hamper world supplies of crude markets in the u.s. heading lower this government reports indicated that sales at u.s. retailers increased just point one percent in december which box earlier expectations of a stronger holiday season both the dow and the nasdaq losing a third of one percent this hour markets closed flights here in moscow continue the lousy week for the l.t.s. m i six both indices are still suffering contagion from world economic fears let's have a look at some of the share moves almost six today energy majors have been mixed gazprom is down after announcing plans to spen

vent the straits of hormuz again that's right about one point five billion barrels a day so taken together that's still a small proportion of the oil that would be lost if the straits of hormuz were to be closed. let's have a look at the markets now oil first both brant and light sweeter up over a dollar a barrel of the hitting a two week low early in the week it's been triggered by concerns we just heard the strike in nigeria and threats of more sanctions against iran's nuclear program crude supplies stock markets have shot up in italy and spain off the boring course fill in that auctions today in the sun those countries are getting to grips with the euro it was millions job almost three percent of london and frankfurt are also higher this hour. and here in moscow the markets have picked up their first gains for the week both e.r.t.'s and my six are hovering around one percent in the black at the moment. this of a look at some of the share moves on the my six energy majors a mix this hour gazprom is up after announcing plans to spend five point seven billion dollars on the soar to winter

i think the escalation in recent weeks with the recent ten day military drill in the in the straits of hormuz has to be weighing heavily on the minds of of the us and others but but i think really the the idea that iran would really close off the straits of hormuz or attempt to do so would only be an absolute last measure resort for a country that relies on the importation of refined gasoline and other things through the very straits that they would be a sensibly sabotaging and planting mines in so it's it's quite remarkable to think that that iran would do that in any other situation other than they felt that the entire existence of their country was under threat so so again i don't think it's a really credible threat unless they believe that the military tensions are are going to boil over and in turn into some sort of confrontation and again that that's really due to these crippling sanctions that have been placed so adding more sanctions to to the mix is is really just a recipe for military disaster i think rather said today that it is ready to return to the negotiation table and discuss

has been threatening to close the strait of hormuz the world's most important oil exporting nation gulf nation and meanwhile the e.u. is mulling a bargain purchase of a rainy and oil decision on that expected before the end of the month let's discuss this more with side mohammad marandi from the university of tehran here and he live but you are joining us iran has been holding these military exercises as we say the past ten days and threatening to close a key oil routes does it only have itself to blame though for they to centuries. not at all i mean even if you look at what the u.s. presidential candidate ron paul has been saying he says that this sanctions on the iranian central bank by the american government has effectively an act of war so it is really the americans that are being provocative they are trying to make ordinary iranians suffer at the same time you see senior american officials and politicians constantly calling for the assassination of iranian scientists of iranian military commanders politicians and the constant threat of attacking and bombing the country so really t

goes through and if there is insecurity in the region it's not just the strait of hormuz if there is a conflict in the persian gulf tankers who will be at risk insulations will be it was war as hell so it's not at all just the strait of hormuz and this instability will go beyond the persian gulf it will i think oh oil exports and gas exports will be at risk in central asia and throughout the middle east and there will be a lot of backlash from the public throughout the region so given what you say there is a real war in the region possible. i personally think that it is doubtful but the problem is is that the united states is pushing this conflict this confrontation in a direction which is becoming dangerous and if the united states bullies other countries into. blockading iranian oil exports or bullies in countries and into and stopping to stop them from buying iranian oil then and if countries in the region like saudi arabia any reason go along with such a project even though it's highly unlikely they'll be able to do so because the saudis really don't have that much excess capacity

iran is on likely to make a pre- emptive move to close the strait of hormuz because they depend on thetraight. all of their oil exports pastor that straight and i think the iranians cannot compliment -- contemplate closing the strait. there is a question of whether they would do that. they would have to think very hard because if they get into conflict with the united states or regional navies, willett and -- will it end or will it be a broader conflict? the second point about 1953 -- the overthrow of the prime minister in 1953 and a real installation of the shah - there was a lot of negative history between the u.s. and a run on both sides. if you look at the iranian population now, it is very young. i don't think that the decision making is guided by the past. i felt -- i don't think it is guided by what happened in the 1950's or 1960's or even 1979. people see a regime that is brutally oppressive and see an economy that is in shambles. i think people inside iran larsa want to change and want better relations with the rest of the world. host: democrat, good morning. caller: i have a

the country's military leaders threatened to block oil shipments through the strait of hormuz. one-fifth of the world's oil production flows through the strait. iran's news agency said today the first part of the obama letter warned that closing the strait was washington's red line. u.s. defense secretary leon panetta said as much today, leaving open both diplomatic and military options. >> we have always made clear what our policies are there with regard to iran, both in terms of their not obtaining nuclear weapons and not closing the strait of hormuz. it takes two to be able to engage. and we've always expressed a willingness to try and do that. but we've always made clear that in terms of any threats to the region, in terms of some of the behavior they've conducted in the region that we'll also be prepared to respond militarily if we have to. >> warner: iran has been showing off its own determination-- test-firing a new, longer-range cruise missile in the gulf. and announcing it had begun enriching uranium at a second site-- underground. back in the u.s., many republican pres