If Iran were to follow through with its threat to close the Strait of Hormuz, the impact would be immediate as energy analysts say the price of oil would start to soar and could rise 50 percent or more within days.<\/p>\n
Closure of Strait of Hormuz<\/strong><\/p>\n Energy analysts say even a partial closure of the Strait of Hormuz could raise the world price of oil within days by $50 a barrel or more, and that would quickly push the price of a gallon of regular gasoline to well over $4 a gallon.<\/p>\n \u201cYou would get an international reaction that would not only be high, but irrationally high.\u201d said Lawrence J. Goldstein, a director of the Energy Policy Research Foundation.<\/p>\n Just the threat of such a development has helped keep oil prices above $100 a barrel in recent weeks despite a return of Libyan oil to world markets, worries of a European economic downturn and weakening American gasoline demand.<\/p>\n Both Brent and WTI oil prices rose slightly on Thursday as the political tensions intensified.<\/p>\n US and China Alliance<\/strong><\/p>\n Analysts say that a crisis over the Strait of Hormuz would most likely bring China and the United States into something of an alliance to restore shipments, although Mr. Goldwyn said China would more likely resort to private diplomacy instead of military force.<\/p>\n Europe and the United States would probably feel the least direct impact because they have strategic oil reserves and could get some Persian Gulf oil through Red Sea pipelines. Saudi Arabia has pipelines that could transport about five million barrels out of the region, while Iraq and the United Arab Emirates also have pipelines with large capacities.<\/p>\n But transportation costs would be higher if the strait were blocked, and several million barrels of oil exports would remain stranded, sending oil prices soaring.<\/p>\n