Iran and OPEC discuss Strait of Hormuz

The new president of OPEC traveled to Tehran to discuss the Strait of Hormuz and its importance, Trend reports on Sunday.

Abdul-Kareem Luaibi, Iraq' oil minister and newly elected head of OPEC, traveled to Iran on Saturday to meet with officials from the country's oil ministry. Before his trip, Luaibi had told reporters that he wanted to encourage his Iranian friends to assure the world that everyone wishes to safeguard the production and export of oil in the Middle East and the Persian Gulf.

The Suez and Panama Canals and the Strait of Hormuz are the world's three critical waterways for crude oil. Any disruption in the flow of ships carrying oil through these waters would affect at least 30 percent of the oil transported to oil consuming countries.

The Strait of Hormuz is in the world's most strategic energy zone because of its proximity to Iran, Saudi Arabia, Iraq, Qatar, Kuwait and the United Arab Emirates, all countries with the world's biggest reserves of oil and gas. Any mention of blocking the strait quickly pushes up world oil prices.