Strait of Hormuz showdown unlikely

It would be "relatively easy" for Iran to shut down the Strait of Hormuz and disrupt some 15 million b/d of crude flows but such an event is unlikely and any blockade would not last beyond two weeks, due to a US-led military response, Societe Generale said in a research report released Friday. "We believe […]

Vandana Hari reports for Platts:

It would be "relatively easy" for Iran to shut down the Strait of Hormuz and disrupt some 15 million b/d of crude flows but such an event is unlikely and any blockade would not last beyond two weeks, due to a US-led military response, Societe Generale said in a research report released Friday.

"We believe it would be relatively easy for Iran to shut down the Strait of Hormuz. A credible threat from missiles, mines, or fast attack boats is all it would take for tanker insurers to stop coverage, which would halt tanker traffic," SocGen analysts said in the report.