Iran Begins Straits of Hormuz Wargames

"As was reported yesterday, Iran has now officially commenced its 10 day wargame exercise in the Straits of Hormuz. What happens next is 10 days in which one false move, either planned or false flagged, can have some serious (if required by the status quo) consequences: after all WTI is at $100, and the ECB has quietly "printed" $700 billion in the past 6 months, with the Fed not far behind - there has to be some implicit backstop to keep crude from soaring once it becomes clear that print mode is on, and the only way that can happen is the "possibility" of expanded oil supply through control of the main supply channels. From Reuters: "Iran began 10 days of naval exercises in the Strait of Hormuz on Saturday, raising concern about a possible closure of the world's most strategic oil transit channel in the event of any outbreak of military conflict between Tehran and the West. The military drill, dubbed "Velayat-e 90", comes as the tension between the West and Iran is escalating over the Islamic state's nuclear programme. Iranian authorities have given no indication the strait will be closed during the exercise, and it has not been shut during previous drills. "Displaying Iran's defensive and deterrent power as well as relaying a message of peace and friendship in the Strait of Hormuz and the free waters are the main objectives of the drill," Sayyari said. "It will also display the country's power to control the region as well as testing new missiles, torpedoes and weapons."

at http://www.zerohedge.com/news/iran-begins-straits-hormuz-wargames