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Oil surges as Iran threatens to close Strait of Hormuz

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  • Description

    U.S. warships move into Persian Gulf amid new tensions

  • Duration 3:45
  • Date

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This transcript is automatically generated

Presence of the gulf of more timber for the fire.

A retired lieutenant colonel Ralph Peters very very word -- wears a stone.

Well -- it's up to the Iranians the real danger right now is miscalculation.

The Iranians imagining that they can back -- that we won't really respond.

And I'm afraid it may have misread the United States and especially President Obama.

When we pulled everybody out of Iraq so precipitously.

They read that as weakness that Obama is not really committed but any US president.

He is going to respond to an Iranian.

Assault on oil tankers going through the Strait of Hormuz -- attempt to close the Strait of Hormuz so this could.

Escalate very very quickly.

And it could be very ugly and prolonged.

And the Iranians when they look at this.

They see sanctions as badly hurting their economy their sanctions are biting not gonna stop their nuclear weapons program but they're really hurting them.

So they -- -- the state of the world economy.

And they well if they're gonna hurt us it will hurt them back.

And they realized that their ace in the hole he is the oil production facilities and the loading facilities in the Persian gulf -- the Strait of Hormuz that choke point because imagine knew they don't even have to sink an oil tanker.

They just have to damage one maritime insurance rates through through the roof.

No ships are going in there until we put together escort duty and I had to escort -- the naval escorts.

And in the meantime the difference to this French -- World economy could really be severe.

Well as you know I've discussed as well colonel I mean you just have to announce a blockade or an -- and a blockade.

Do without a shot being -- without a -- being moved and all of a sudden oil prices skyrocket in the markets because this is a commodities traded in the markets having said that I don't.

I'm wondering what role the Chinese and the Russians will have in this largely noncommittal on on dealing with it the Iranians.

But their oil prices go up as well particularly China's in the event that.

A ran acts crazy out so what pressure if -- can we -- on them.

Well China just isn't gonna do we want China to do and couldn't also certainly feeling his -- they're gonna act accordingly -- interest don't want hand.

Yes Chinese.

Oil costs would go up as well as ours but China may be playing as a usually do a long game looking at what damages Europe.

Helps them in the long run and also frankly the Chinese military would love the -- Must go -- with a -- in the Persian gulf because the Chinese are worried about two things.

Are sophisticated aircraft -- or naval capabilities.

Or to forces -- force and navy were the primary players in this book for the big dog in the fight.

The air force premium fighter the F 22350.

Million dollars each hasn't been working well.

Got oxygen problems pilots blacking out radar problems.

If that doesn't work -- if we lost some.

It would be a devastating for the air force but also he would tell -- -- Russians and Chinese a lot about the bigger worry is for the navy.

For seven years -- it's a battle of midway.

-- naval power has -- construct and again around aircraft carriers.

If the -- radiance.

Were able to damage one of our carriers none -- the -- if it damages.

It suggests the Chinese could sink and it changes and able paradigm.

So the world's military powers are gonna watch this very very closely.

And we're confident we can take the Iranians apart.

But we may pay a much higher price we'd like.

Colonel resort sir thank you not -- for your and -- words -- -- your service to this country colonel Peters could see you thank you.

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