If the Americans make a wrong move toward Iran, the shipment of energy will definitely face danger, and the Americans would not be able to protect energy supply in the region."--Iranian Supreme Leader Ali Khamenei, June 4, 2006 Iran supports terrorism, opposes the Middle East peace process, undermines the U.S. position in Iraq, and seems determined to pursue a nuclear weapons program that will threaten U.S. allies in the region. It possesses the world's third-largest oil reserves and the world's second-largest reserves of natural gas. In addition, it is the second-largest exporter in the Organization of the Petroleum Exporting Countries (OPEC) and the fourth-largest exporter of crude oil globally. Geographically--and therefore militarily--Iran dominates the narrow Strait of Hormuz, through which about 40 percent of the world's internationally traded oil passes daily. Put simply, it is a critical player in the world energy economy. To limit Iranian influence on the energy economy, the international community, led by the United States, should adopt energy policies to diminish Iran's leverage and exploit its vulnerabilities.
