Tensions flare and political muscle is flexed as the Iranian nuclear stand-off with the U.S.. Iran threatens closure of the Strait of Hormuz.

The Strait of Hormuz is the only outlet from the Persian Gulf to the Arabian Sea and on to the Indian Ocean where the oil is shipped to Asian Markets. Oil bound for the European and U.S. markets travel through the Strait of Hormuz then from the Persian Gulf go to the Red Sea and the Suez Cannel (which is another of the world’s 7 major oil choke points) to the Atlantic Ocean.

Why is this small shipping channel so important? Each day one fifth of the world’s oil supply passes through it. Closing it would cause Brent crude prices to skyrocket. Just the threat looming, you are seeing uneasiness in the market and prices creeping higher on uncertainty.

Today’s featured notes are from Iran. They are current notes with the Shah. ENJOY!!