Oil Tanker Operators Suspend Travel Through Strait Of Hormuz

Zero Hedge: Tanker Operators Suspend Travel Through Strait Of Hormuz

Following Iran's decision to lob missiles at US-Iraqi bases last night, several major tanker operators have suspended sailing through the Straits of Hormuz, the site of several tanker attacks last year.

Petrobras, Bahri - Saudi Arabia's state-run tanker operator - and other tanker companies have suspended sailing through the Straits of Hormuz, WSJ reports, citing unidentified people familiar with the matter.

Meanwhile, Gulf officials are already trying to convince the world that there's nothing to worry about in what's essentially a tinderbox inside another tinderbox. United Arab Emirates’ Energy Minister Suhail al-Mazrouei said on Wednesday he saw no immediate risk to oil passing through the critical gateway through which 20% of the global supply of crude travels. al-Mazrouei made the comments on the sidelines of a conference in Abu Dhabi, the UAE capital.

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Update #1: Saudi tanker giant Bahri suspends transit through Strait of Hormuz – WSJ -- FX Street
Update #2: MARAD Renews Warning of Risks to U.S. Ships in Strait of Hormuz -- Maritime Executive

WNU Editor: If the Strait of Hormuz is shut down for any period of time, expect this .... Oil prices will climb above $100 a barrel if Iran blocks the Strait of Hormuz, analysts predict (CNBC).

This Is How Iran Can Shut Off The World's Oil Supply

Edward Chang, National Interest: How Iran Could Try to Shut off the Global Oil Supply

(Close the Strait of Hormuz.)

Key point: Iran could try to stop some oil tankers from getting out of the Gulf, but doing so would lead to a firm U.S. response.

President of Iran Hassan Rouhani threatened to close the Strait of Hormuz in response to potential sanctions that could be levied upon Iranian oil exports, threats which were echoed by the Islamic Revolutionary Guard Corps (IRGC). President Donald Trump has given countries until November 4, 2018, to stop importing petroleum from Iran. This wide-scale ban is part of a new campaign of confrontation and pressure against the Islamic Republic. This demand comes on the heels of the U.S. departure from the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, which was signed in 2015.

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WNU Editor: Sink a few oil tankers will be more than enough to shut down the oil trade through the Strait.

Iran Orders 'Foreign Powers' To Leave The Strait Of Hormuz

Iranian foreign minister Mohammad Javad Zarif in Moscow in May 2019. Reuters

Business Insider: Iran orders 'foreign powers' to leave the Strait of Hormuz, and says the West is playing a 'dangerous game' over Gibraltar tanker seizure

* Many of the latest escalations between Iran and the West have been taking place in the Strait of Hormuz, a narrow waterway that sees $1.2 billion worth of the world's oil flow through it every day.
* On Wednesday, three Iranian gunboats harassed a British oil tanker in the strait, the UK said.
* Iran's foreign ministry spokesman warned on Friday: "Foreign powers should leave the region."
* Iran has threatened to disrupt maritime traffic in the strait multiple times in the past, as doing so could decrease the world's oil supply and send prices shooting up.
* The spokesman also lashed out at Britain was playing a "dangerous game" by seizing an Iranian oil tanker in Gibraltar last week.
Nuclear-deal tensions between Iran and the West also remain unresolved.

Iran has told "foreign powers" to leave its surrounding regions and warned that the rapidly-escalating tensions between Tehran and the West are "a dangerous game."

"Foreign powers should leave the region because Iran and other regional countries are capable of securing the regional security," Iranian foreign ministry spokesman Abbas Mousavi told the state-run IRNA news agency on Friday, according to Reuters.

It is not clear what "the region" entails specifically, or who the "other regional countries" are.

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WNU Editor: Iranian threats against the U.K. are also continuing ..... Iran calls on Britain to release seized oil tanker immediately (Reuters),

Is Iran Capable Of Blocking The Strait of Hormuz?

Business Insider: Iran threatened to cut off a key oil shipping waterway — but the US would blow it out of the water

* Iran threatened to respond to economic sanctions against its oil exports imposed by the US with military action to shut down the Strait of Hormuz, but the US would shut it down quickly.
* The Strait of Hormuz sees around 30% of the world's oil supply pass through, so the US and its allies in the Middle East would have it back open in days.
* Iran must know it can't hold the strait, but a former US ambassador told Business Insider it's likely a bluff to try to send a message about oil prices, which Iran could manipulate and use to help break US-imposed sanctions.

Iran threatened to respond to economic sanctions against its oil exports imposed by the US with military action to shut down the Strait of Hormuz, the sea passage into the Persian Gulf that sees around 30% of the world's oil supply pass — but if they did, the US would shut them down in days.

"As the dominant power in the Persian Gulf and the Strait of Hormuz, (Iran) has been the guarantor of the security of shipping and the global economy in this vital waterway and has the strength to take action against any scheme in this region," Armed Forces Chief of Staff Major General Mohammad Bagheri said, according to Reuters.

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WNU Editor: Any Iranian attempt to block the Strait of Hormuz will not only result in a U.S. reaction, but every Gulf State that ships oil through the strait will react, as well as every other nation in the world that is dependent on stable oil supplies.

More Threats From Iran To Block The Strait Of Hormuz To Oil Traffic (Update)

CNBC: Iran’s Revolutionary Guards threaten to cut off regional oil exports amid US pressure

* Shortly after the Trump administration reaffirmed this week its threat to punish companies that buy Iranian crude, President Hassan Rouhani warned Tehran could soon disrupt oil shipments to neighboring countries.
* Washington’s sanctions against Iran are set to be re-imposed on November 4.
* International benchmark Brent crude traded at around $78.14 Thursday lunchtime, around 0.1 percent lower, while U.S. West Texas Intermediate (WTI) stood at around $74.48, up 0.4 percent.

Iran is threatening to dramatically ratchet up its response to the U.S., if President Donald Trump succeeds in halting crude sales from the Persian Gulf when sanctions snap back on the country.

Shortly after the Trump administration reaffirmed this week its threat to punish companies that buy Iranian crude, President Hassan Rouhani warned Tehran could soon disrupt oil shipments to neighboring countries.

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WNU Editor: There definitely has been a poltiical shift in Iran .... Sudden shift in Iran as hardliners back Rouhani (AFP). The question that remains unanswered is .... will it last.

More Threats From Iran To Block The Strait Of Hormuz To Oil Traffic

Iran threatens to block Strait of Hormuz over US oil sanctions -- The Guardian
Oil Wars: Iran Says 'Ready' to Block of Hormuz Strait in Retaliation to U.S. -- Haaretz/Reuters
Iran Threatens to Stop Hormuz Oil Exports If Own Crude Cut -- Bloomberg
Iran is threatening to close the world's most important transit lane for crude oil -- CNBC

This Is How Iran Will Win In A Standoff Over The Strait Of Hormuz

James S. Robbins, US News and World Report: Iran's Strait Games

This is how Iran can win a standoff over the Strait of Hormuz.

When Iran threatens to close the Strait of Hormuz, our knee-jerk response might be to say, "Make our day." But unfortunately we might have to take the threat, uttered repeatedly by Iranian officials, more seriously than we first expect.

Just last month, General Hossein Salami, the deputy commander of Iran's Revolutionary Guard, said that Iranian forces will close the Strait if the United States "threatens" Iran. "If the Americans and their regional allies want to pass through the Strait of Hormuz and threaten us," he said, "we will not allow any entry." The comment came days after Iran's Supreme Leader, the Ayatollah Ali Khamenei, publicly criticized the U.S. presence in the Persian Gulf.

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WNU editor: Iran will not need to engage U.S. forces to stop the oil flow through the strait. One missile strike on an oil tanker would send insurance rates soaring .... thereby making it impossible for anyone to transport oil because of the sky-high premiums (or no premiums) that would then become the norm. And in the event of a shooting war .... the U.S. and its allies may win, but the repercussions from such a conflict would last for years, starting with sky-high oil prices and a  probable deep global recession. And as for marine traffic through the strait .... a risky endeavour that would definitely not be worth the risk.

Is The U.S. Navy Now Avoiding the Strait Of Hormuz After Recent Iranian Threats?

Voice of America: US Navy to Avoid Hormuz After Iran Threat to Close Strait

CAIRO—U.S. Defense Department spokesman Colonel Steven Warren says U.S. warships have stopped accompanying U.S. and British-flagged commercial vessels through the Strait of Hormuz. The move came after Iran threatened to close the waterway to U.S. and allied vessels.

The threat to close the Strait of Hormuz follows an announcement last week by Iran’s naval commander, Admiral Habibollah Sayyari, that his country would hold maneuvers in the Persian Gulf in the near future.

The deputy head of Iran’s Revolutionary Guard, General Hossein Salami, told state TV Wednesday that Iran would close the strait to U.S. and allied commercial vessels if it came under threat.

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WNU editor: The Iranian threat to close the Starit of Hormuz was only made a few days ago .... Iran To Close Key Oil Shipping Lanes If U.S. Proceeds With Military Drills (OilPrice) ... and now this announcement from U.S. Defense Department spokesman Colonel Steven Warren that U.S. warships will now no longer accompany U.S. and British-flagged commercial vessels through the Strait of Hormuz. Is this coincidence? Probably not. And if it is related, it only feeds into the perception that President Obama is going to do everything in his power to avoid any conflict in the last year of his term.

Top Iran Commander: Iran To Block Passage Of US Ships In the Strait Of Hormuz If Threatened

Al Jazeera: Iran warns it could close Strait of Hormuz to US

Military commander says the US and its allies could be denied access to vital passageway if they 'threaten' Tehran.

Iran will close the strategic Strait of Hormuz, a passageway through which a third of the world's oil is transported, unless the US and its allies stop "threatening" it, a senior Iranian military commander has said.

"If the Americans and their regional allies want to pass through the Strait of Hormuz and threaten us, we will not allow any entry," state media quoted Brigadier General Hossein Salami, the deputy commander of the powerful Revolutionary Guard, as saying on Wednesday.

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More News On Iranian Threats To Close The Strait Of Hormuz

Iran threatens to block Strait of Hormuz -- Trend Agency
Iranian commander threatens to close Strait of Hormuz to US -- AP
Iran threatens to close strategic strait to US -- The Hill
Iran May Close Strait of Hormuz If US Continues 'Threatening' Tehran
-- Sputnik
‘No Hormuz passage’: Iran's navy highly dangerous to US, top general warns -- RT
Top Iran Revolutionary Guard commander threatens to block Strait of Hormuz -- IBTimes

Oil Tankers Are Waiting It Out Near The Strait Of Hormuz As Iranian - Saudi Tensions Escalate

(Click on Image to Enlarge)

Map showing the world's crude oil tankers

Bloomberg: Iran, Saudi Arabia Square Up Across World's Busiest Tanker Route

* Largest concentration of oil tankers located near Hormuz
* Strait of Hormuz world's most important oil chokepoint: EIA

There are several reasons why escalating tensions between Iran and Saudi Arabia make markets nervous. One of them is that they sit on either side of the Persian Gulf, the world’s biggest concentration of oil tankers.

At the mouth of the Persian Gulf is the Strait of Hormuz, the world’s most important choke point for oil shipments, with about 17 million barrels of crude passing through daily, according to the U.S. Energy Information Administration. Oil prices jumped more than 3 percent.

WNU Editor: Insurance companies, oil tanker owners, oil companies, financial institutions, governments, .... everyone is nervous.

The U.S. Navy Has Ended Its Strait of Hormuz Escort Mission

Reuters/U.S. Navy

Wall Street Journal: U.S. Navy Ends Strait of Hormuz Escort Mission

Navy vessels will remain on patrol in the area

The U.S. Navy will no longer accompany American and British flagged cargo vessels traveling through the Strait of Hormuz, officials said.

The Navy began the program last week after Iranian naval vessels ordered the Maersk Tigris, a Marshall Island-flagged cargo vessel, out of a shipping lane and then boarded the ship.

Col. Steve Warren, the chief Pentagon spokesman, announced the shift but said it was a relatively minor change, adding that Navy vessels will remain on patrol in the area, able to respond to any vessel that requires help.

More News On The U.S. Navy Ending Its Strait of Hormuz Escort Mission

US warships no longer accompanying commercial ships in Gulf -- AP
U.S. Navy stops accompanying ships through Strait of Hormuz -- Reuters
US calls off protection mission for US-flagged vessels in Gulf -- AFP
Navy ends escorts through Strait of Hormuz -- CNN
U.S. Navy Stops Accompanying Ships Through the Strait of Hormuz -- Bloomberg

Citing Concerns About Iran U.S. Navy Warships Will Now Escort U.S.-Flagged Commercial Vessels That Pass Through the Strait of Hormuz

CNN: Navy to escort U.S. commercial ships near Iran

Washington (CNN)CNN has learned that U.S. Navy warships will now accompany U.S.-flagged commercial vessels that pass through the Strait of Hormuz due to concerns that ships from Iran's Revolutionary Guard Corps navy could try to seize a U.S. cargo ship.

Pentagon officials provided clarification Thursday afternoon that not every ship will necessarily be accompanied by the Navy. But this is still a significant change in the U.S. military posture in the Strait.

The classified plan was approved by the Pentagon earlier Thursday, according to a senior defense official.

WNU Editor: Apparently the seizure of a container ship two days was not the first time that Iran has tried to seize cargo ships in the past week .... Iranian navy 'harassed' American cargo ship just days before they seized second vessel carrying 34 sailors (Daily Mail) .... in turn it looks like a lot of shipping companies lobbied the U.S. government for protection, hence we have today's announcement that US-flagged  ships will not be escorted.

More News On U.S. Navy Warships Will Now Escort U.S.-Flagged Commercial Vessels That Pass Through the Strait of Hormuz

U.S. Navy Starts Accompanying Ships in Strait Where Iran Seized Cargo Carrier -- WSJ
U.S. Navy starts to accompany U.S. ships passing through Strait of Hormuz -- Reuters
U.S. Navy escorting American ships in Strait of Hormuz amid Iran tension -- CBS/AP
US Navy to assist US-flagged ships through Strait of Hormuz -- BBC
U.S. Accompanying U.S.-Flagged Ships in Strait of Hormuz -- Bloomberg
US Navy to accompany US-flagged ships in Persian Gulf after Iran seizes vessel -- FOX News
Navy will escort U.S. ships traveling near Iran -- Virginia Pilot
US Navy to Accompany US-Flagged Ships Through Strait of Hormuz -- Defense One

Massive Anti-Mine Naval Exercise Begins In The Persian Gulf

U.S., Allies In Gulf Naval Exercise As Israel, Iran Face Off -- Reuters

(Reuters) - The United States and its allies have launched a major naval exercise in the Gulf that they say shows a global will to keep oil shipping lanes open as Israel and Iran trade threats of war.

Publicly announced in July, the operation, known as IMCMEX-12, focuses on clearing mines that Tehran, or guerrilla groups, might deploy to disrupt tanker traffic, notably in the Strait of Hormuz, between Iran and the Arabian peninsula.

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More News On The U.S. And It's Allies Conducting Anti-Mine Naval Exercises In The Persian Gulf

US navy begins multinational Gulf region exercise -- Deutsche Welle
US leads biggest Gulf mine-clearing exercise -- Gulf News/Bloomberg
US leads major minesweeping Gulf exercise -- Herald Sun
IMCMEX 12, Largest Mine Countermeasure Exercise in Middle East Begins -- Defpro
We're Headed To The Persian Gulf For A Huge Military Mine Clearing Exercise -- Business Insider
US leads major minesweeping Gulf naval exercise -- Asia One/AFP
Defence experts downplay UK, U.S. deployment near Strait of Hormuz -- Al Arabiya
Iran Watching as U.S. Military Launches Exercise in Strait of Hormuz -- PBS News Hour

Previous Post: Naval Buildup Continues: 25 Nations Have Warships Near The Strait Of Hormuz

Naval Buildup Continues: 25 Nations Have Warships Near The Strait Of Hormuz

Armada Of British Naval Power Massing In The Gulf As Israel Prepares An Iran Strike -- The Telegraph

An armada of US and British naval power is massing in the Persian Gulf in the belief that Israel is considering a pre-emptive strike against Iran’s covert nuclear weapons programme.

Battleships, aircraft carriers, minesweepers and submarines from 25 nations are converging on the strategically important Strait of Hormuz in an unprecedented show of force as Israel and Iran move towards the brink of war.

Western leaders are convinced that Iran will retaliate to any attack by attempting to mine or blockade the shipping lane through which passes around 18 million barrels of oil every day, approximately 35 per cent of the world’s petroleum traded by sea.

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My Comment: Considering what is at stake .... no one is taking any chances.

Iran Will Keep Open The Strait Of Hormuz Unless More Sanctions Or Military Action Occurs

(Click on Image to Enlarge)

Strait Of Hormuz Will Stay Open Unless Iran’s Interests Are Harmed: Military Commander -- National Post/Reuters

DUBAI — Iran will keep the vital Strait of Hormuz shipping lane open as long as the waterway served its interests, a military commander was on Monday quoted as saying.

Iranian politicians and officials have often said that Iran could block the strait — the neck of the Gulf through which 40% of the world’s seaborne oil exports passes — in response to sanctions or military action.

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My Comment: The Iranians are sending a message to Panetta who is in the region.

What Is Iran's Strategy When It Comes To The Strait Of Hormuz?

Iran’s Strategy In The Strait of Hormuz -- Kayhan Barzegar, The Diplomat

Iran would have much to lose in closing the strait. If Tehran’s economic security is endangered, it might choose a 'measured' response.

As a consequence of the failure of the latest negotiations over Iran’s nuclear program, the European Union ban on the importation of Iranian oil took effect on July 1, 2012, and closure of the Strait of Hormuz by Iran became an issue again. This has provoked the following question: What actually is Iran’s strategy in the Strait of Hormuz?

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My Comment: They are using the threat of closing the Strait of Hormuz to deter any Israeli or U.S. attack on their nuclear facilities .... a strategy that is working so far.

Iran's Parliament Votes To Close The Strait Of Hormuz

More Than Half Iran Parliament Backs Hormuz Closure Bill -- Reuters

(Reuters) - Just over half of Iran's parliament has backed a draft law to block the Strait of Hormuz, a lawmaker said on Friday, threatening to close the Gulf to oil tankers in retaliation against European sanctions on Iranian crude.

The assembly has little say in defense and foreign policy, where Supreme Leader Ayatollah Ali Khamenei has the last word, but the law would lend political support to any decision to close the strait - a threat that Iran's foreign minister recently played down.

Lawmaker Javad Karimi Qodoosi said 150 of parliament's 290 members had signed the bill, describing the strait as "the world's lock" to which Iran holds the key.

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Update #1: Hormuz Strait closure bill backed by more than half of Iranian MPs -- RT
Update #2: Iran lawmaker: Support to close Strait of Hormuz -- Newsday/AP

My Comment: The US and its allies have made it very clear that they would not permit Iran to close the Strait of Hormuz. On a side note .... I love this info-graphic from Hezbollah on how Iran will close the trait of Hormuz.

Iran Threatens To Close The Strait Of Hormuz Again

Iranian ships participate in a naval parade on the last day of the Velayat-90 war game on the Sea of Oman near the Strait of Hormuz in southern Iran January 3, 2012. REUTERS

Iran Issues New Oil Blockade Warning -- The Independent

Iran could prevent even “a single drop of oil” passing through the Strait of Hormuz if its security is threatened, a naval chief said today, as tensions simmer over Tehran's nuclear programme.

Tehran will increase its military presence in international waters, said Ali Fadavi, naval commander in Iran's elite Islamic Revolutionary Guard Corps (IRGC).

"If they (the US) do not obey international laws and the IRGC's warnings, it will have very bad consequences for them," Fadavi said, according to Iran's Fars News Agency.

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More News On Iran Threatening To Close The Strait Of Hormuz

Iran issues new oil blockade warning -- Reuters
Iran in full control of Hormuz Strait: IRGC navy commander -- Xinhuanet
Iran to close Strait of Hormuz if its security is threatened, warns naval chief -- Haaretz
US report reveals Iran's military strategy -- The National
Hormuz alarm bells -- Ahram Online

More Threats From Iran On Blocking The Strait Of Hormuz

Iranian Military Leader Threatens To Close Strategic Strait -- CTV/AP

TEHRAN, Iran - Iran will block the strategic Strait of Hormuz at the mouth of the Persian Gulf, the passageway through which a fifth of the world's oil flows, if its interests are seriously threatened, a senior Iranian military commander said Saturday.

"We do have a plan to close the Strait of Hormuz," state media quoted Gen. Hasan Firouzabadi as saying Saturday. "A Shiite nation (Iran) acts reasonably and would not approve interruption of a waterway ... unless our interests are seriously threatened," Press TV quoted him as saying.

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More Threats From Iran On Closing The Strait Of Hormuz

Senior Iranian military commander threatens to block strategic strait if interests threatened -- Washington Post/AP
Iran will only shut Hormuz if interests threatened -- Jerusalem Post
Iran to shut Hormuz Strait "if threatened": commander -- Xinhuanet
Iran 'won't close strait unless trouble is serious' -- AFP
Iran has not prepared bill for blocking Hormuz Strait, says parliament speaker -- Haaretz
US beefs up Gulf naval force amid tension with Iran -- Reuters

Iran Threatens To Close The Strait Of Hormuz Because Of Sanctions

Iran Drafts Bill To Block Hormuz For Gulf Oil Tankers -- Reuters

(Reuters) - Iran's National Security and Foreign Policy Committee has drafted a bill calling for Iran to try to stop oil tankers from shipping crude through the Strait of Hormuz to countries that support sanctions against it, a committee member said on Monday.

The Iranian parliament is vocal and sees itself as independent but does not hold much power. Bills are unlikely to get far unless sanctioned by the leadership.

"There is a bill prepared in the National Security and Foreign Policy committee of Parliament that stresses the blocking of oil tanker traffic carrying oil to countries that have sanctioned Iran," Iranian MP Ibrahim Agha-Mohammadi was quoted by Iran's parliamentary news agency as saying.

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More News On Iran Threatening To Close The Strait Of Hormuz Because Of Sanctions

Iran Drafted A Bill To Block Tankers In The Strait Of Hormuz -- Business Insider
Iran Drafts Bill to Block Tankers from Hormuz -- FOX News/AP
Iran Prepares Bill to Close Hormuz Strait in Response to EU Oil Sanctions -- CRIEnglish
Iran Majlis to codify plan to close Hormuz Strait: Iran MP -- Press TV (Iran)
100 Iranian MPs call for Strait of Hormuz to be blocked -- Tehran Times (Iran)

U.S. Naval Group Crosses The Strait Of Hormuz (Again)

Photo: The Abraham Lincoln was accompanied by other US vessels

USS Abraham Lincoln In Strait Of Hormuz Voyage -- BBC

The US aircraft carrier Abraham Lincoln has sailed through the Strait of Hormuz, close to the coast of Iran, for the second time in recent weeks.

A BBC reporter on board said an Iranian patrol boat at one point passed by two miles (3.2km) from the carrier.

The carrier was accompanied by a US cruiser and destroyer.

Iranian officials recently threatened to close the channel, through which 20% of the world's oil exports pass, in a row over oil trade embargoes.

The BBC's Jonathan Beale on board the Abraham Lincoln says the US has insisted it will keep the busy shipping lane open.

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More News On U.S. Naval Group Crossing The Strait Of Hormuz

U.S. naval battle group crosses Strait of Hormuz -- CBS/AP
Iranian navy shadows USS Abraham Lincoln through Hormuz Strait -- RT
Iranian patrol boats shadow US aircraft carrier as it passes through Strait of Hormuz -- Washington Post/AP
Iranian boats shadow US aircraft carrier in Gulf -- AP
U.S. Carrier In Strait Of Hormuz -- Radio Free Europe

My Comment: The U.S Navy is trying it's best to tweak the Iranians .... and they are succeeding.