Recent findings by U.S. intelligence agencies reportedly suggested that Iran can now shut down the Strait of Hormuz at will, irrespective of the impending framework agreement scheduled for signing in Geneva on Friday.
Iran is contemplating an economic "nuclear option" if negotiations collapse, using the Houthis to disrupt shipping through the Bab-el-Mandeb Strait, a critical trade route linking the Red Sea and Indian Ocean, potentially threatening global commerce, CNN reported on Tuesday.
The intelligence agencies believe this newfound power could have far-reaching implications for the global economy, as per the report.
"We have now handed Iran de facto control over the strait – a weapon more powerful than any nuke," a source disclosed to CNN.
Iran has also shown it can carry out precision strikes on Gulf nations' energy infrastructure, giving Tehran another powerful lever it can use to advance its strategic interests.
