Here's the global oil choke point in focus as investors digest the news that Iran shot down a U.S. drone:
The Strait of Hormuz, the world’s most sensitive oil-transportation choke point, remains in focus, after U.S. and Iranian officials on Thursday said Iran shot down a U.S. military drone near the waterway.
At its narrowest point, the waterway is only 21 miles wide, and the width of the shipping lane in either direction is just 2 miles, separated by a two-mile buffer zone. What’s the latest? Iran’s Islamic Revolutionary Guard Corps, a paramilitary that answers solely to Supreme Leader Ayatollah Ali Khameini, said it shot down the drone when it entered Iranian airspace near the Kouhmobarak district in southern Iran’s Hormozgan Province, the Associated Press reported. Kouhmobarak is around 1,200 kilometers southeast of Tehran and near the Strait of Hormuz. The U.S.
Could Iran close the strait? The Fifth Fleet’s presence has long cast doubt on Iran’s ability to close the waterway, analysts said.
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