Strait of Hormuz

There is a narrow little passage that about 40% of the earth's oil flows through called the Strait of Hormuz.  Iran has been threatening to close it and mess with global oil markets.  The USA has said that Iran will do no such thing.  Tensions are building.

BEIRUT—Tensions between Iran and the U.S. rose Wednesday as the U.S. Navy warned it would prevent any attempt to close the strategic Strait of Hormuz, as Iranian officials threatened to do in response to imposing sanctions on its oil exports.

A significant supply of the world's energy—about 15 million barrels of oil per day—passes through the strait, a narrow passage that connects the Persian Gulf to the Gulf of Oman. A disruption of that flow would send higher the price of oil in an already fragile global economy.

Several Iranian officials over the past week commented on Iran's capability and willingness to choke off the strait if the West embargoes Iranian oil or takes any other hostile action.

Iranian Navy Admiral Habibollah Sayyari repeated Wednesday that it would be "very easy" for the country's naval forces to shut down the strait. Iran is conducting a 10-day naval exercise in and around the waters of the Persian Gulf.

A day earlier, first Vice President Mohammad Reza Rahimi, said in a speech to Iranian students that "not even a drop of oil will flow through the Persian Gulf" if Iran's oil is embargoed.

"If our enemies in the West start conspiring against us, we'll take strong action to put them in their place," he added.

Here;  http://online.wsj.com/article/SB10001424052970204720204577126732090437136.html?mod=googlenews_wsj

Most analysts don't believe Iran can afford to close the Strait since they depend on the cash coming in every day from oil sales and it would cripple their economy. 

That sure makes sense from an economic point of view...but what if the country's leaders all believe that the 12th Imam is on earth already and is simply waiting for massive chaos to break out on earth so that he can grab the reins to usher in the 13th Caliphate where Islam will rule the world after killing all the Jews and Christians who refuse to bow to Allah...and that Iran's leaders believe they are the one's appointed by Allah to usher in the necessary chaos??

I sure hope we have some analysts who start thinking outside the box.  I believe we also never thought it possible that angry Muslims would fly airplanes into the Twin Towers and the Pentagon while screaming, "Allah Akbar!"

I do know that if Iran did decide to mess with the Strait of Hormuz that oil prices would sky rocket in the short term.  And even if gasoline jumped to $6 gallon for even a few weeks here in the USA....it may really start to rattle people's confidence....which could be a trigger for the collapse of confidence in our paper money system the Western world is currently using.