WTI crude oil futures opened Wednesday’s trading session firm over $101 a barrel after tensions with Iran resurfaced concerning the Strait of Hormuz, as Iran warned that oil sanctions on Tehran would see the strait closed. Latest WTI Oil Price US Light crude oil futures for February 2012 delivery was trading at $101.43 a barrel, 08.07 GMT this morning in electronic trading on the NYMEX. Both WTI and Brent oil prices jumped over 2 percent on Tuesday following the news. Strait of Hormuz Iran threatened to choke off the flow of oil passing through the Strait of Hormuz yesterday, in response to a recent tightening of Western sanctions against Iran that attempt to limit the amount of oil that the country can export. “If Iran oil is banned, not a single drop of oil will pass through Hormuz Strait.� Iran’s 1st Vice President Mohammad Reza Rahimi said Tuesday, according to the Iran State News Agency. France, Germany and the UK are pushing for an embargo on Iranian oil exports to Europe, although several countries, including Greece, have some reservations. EU foreign ministers are scheduled to consider the embargo on January 30. It was not immediately clear whether Mr Rahimi had official backing for his comments. Only senior commanders of Iran’s Revolutionary Guards can take actions such as closing the strait in the face of foreign threats. Oil traders and analysts said a key factor driving the market was the latest news out of Iran. The Strait of Hormuz is the world’s most important crude shipping channel, handling a third of the world’s ocean borne oil. Iran has recently begun conducting military exercises near the Strait. US Oil Stocks Meanwhile, US crude oil stocks shrank by 2.5 million barrels, or 0.8 percent, to 321.1 million last week, according to analysts. That would be the lowest level since December 2008.

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