Britain escalates warning to Iran over Gulf oil lanes

“No one wants war, but tragically it is looking increasingly possible. It
supports terrorism, undermines democracy and is trying to stop the Arab
Spring in Syria,” Mr Halfon said. “Now we are threatened by an
Iranian nuclear bomb which risks the security of the Gulf states, Israel and
the whole region. The question must now be asked: are we facing the prospect
of a nuclear dictatorship in the Middle East?”

Mr Hague replied that the purpose of sanctions was to increase pressure for
Iran to agree to a “peaceful settlement”. He said: “We have
many contingency plans for many contingencies, including … for sending any
further naval forces to that area,” he said.

“But we are not planning to take military action in the Gulf. We call on
Iran to return to the negotiations which are at all times available to it.”

Mr Hague received strong backing from his Australian counterpart, Kevin Rudd
yesterday who said it would adopt EU sanctions on oil, commodities and
banking ties, in full.

“The message needs to be delivered to the people of Iran, the wider
political elites of Iran, as well as the government of Iran that their
behaviour is globally unacceptable,” Mr Rudd said.

The Iranian regime was defiant as officials claimed European countries had
damaged their own economies and inflicted “extra and huge costs”
on ordinary consumers by embargoing Iran’s oil.

Observers described Iran’s reaction as high risk given the value of the rial,
the national currency, has fallen by around 50 per cent against the dollar
in the last month alone. The rial lost 10 per cent of its value in the 24
hours after the European Union’s announcement of oil sanctions.

Nonetheless, the oil ministry in Tehran said the embargo would leave Iran
unscathed while inflicting “slowdown in global economic growth,
particularly in the crisis-hit Western world,”

Heydar Moslehi, the intelligence minister, told Tehran’s official news agency
that Iranians would prosper from the sanctions, hailing them as “opportunities”
that have “already brought lots of benefits to the country”.

Meanwhile Lord Gilbert, a former Labour defence minister, said the world
should stand by while Iran squanders its resources on its nuclear ambitions.
He said: “I think we should just calm down, let them get on with it and
waste their money.”

Prince Mohammad bin Nawwaf, the Saudi Arabian ambassador to London, said
yesterday that Iran would suffer if it carried out its threat to close the
Strait. “The next couple of weeks will be critical,” he said. “Definitely,
the Iranians will pay a heavy price if they try.”

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