Tensions Rise as Iran Threatens U.S. Navy

In the most direct threat yet against the U.S. Navy patrolling the Persian Gulf, Iranian officials warned U.S. warships to stay out of the Gulf or face unspecified consequences. "Iran will not repeat its warning. The enemy's carrier has been moved to the Sea of Oman because of our drill. I recommend and emphasize to the American carrier not to return to the Persian Gulf," Army chief Ataollah Salehi said. "I advise, recommend and warn them over the return of this carrier to the Persian Gulf because we are not in the habit of warning more than once."

The carrier in question is believed to be the USS John C Stennis, which is the lead ship for the task force that is monitoring Iranian activity in the Persian Gulf. The threats from Iran come as new U.S.-led sanctions are starting to have a dramatic impact on the Iranian economy. The U.S. has created economic sanctions that are intended to shut down the buying market for Iranian oil. The U.S. has placed restrictions on financial institutions dealing with the Iranian government, cutting off access to U.S. dollars, which are the primary currency of the oil trade.

And even though major buyers of Iranian oil like China and India are not going to honor the U.S. sanctions, they are already demanding huge discounts from Iran in order to continue purchasing their oil. China already halved its orders for Iranian oil for the month of January.

The nations of Europe are expected to move along the same lines as the U.S., and European sanctions are expected to be initiated in the coming weeks. President Obama maintains direct authority to revise the sanctions against Iran in order to avoid a major spike in oil prices.

The sanctions against Iran are in response to its continued pursuit of a nuclear program, which Iran claims is only intended for domestic energy production.