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LinkAsia | Jan 20
How will sanctions on Iran's oil affect Asian nations? LinkAsia Producer George Lewinski sits down with host Sydnie Kohara to discuss the potential...
And half a world away, South Koreans say they'll suffer more from a closure of the Strait than the Western countries that are leading the charge for sanctions. Here's the report from South Korean broadcaster, MBC.
Last year, giant oil companies made huge profits despite the Middle East oil's supply and demand being shaken by the Arab Spring. But the biggest losers from the closure of the Strait of Hormuz will be consumers from countries like South Korea, which have no international oil or natural gas pipelines. If the Strait of Hormuz closes, South Korea will lose 86 percent of its crude oil imports. On the other hand, only 18 percent of US crude imports pass through the Strait of Hormuz. Moreover, the United States is an oil producing nation, and its oil stocks stand at approximately 700 million barrels, giving it the world's biggest reserve of oil.
Robert Einhorn (US State Department):
We are urging all of our partners to consider what they can do to reduce imports of crude from Iran.
Oil prices are expected to soar to USD$200 a barrel, double the current price. This will negatively impact the world's economy. But countries with large stockpiles, like the US, and oil producing nations all stand to make a lot of money.