IRAN-As Iran concluded its naval exercises in the Strait of Hormuz today, Iranian Army Chief, General Ataollah Salehi, warned the Aircraft Carrier USS John C Stennis not to return to the Persian Gulf. He said in a statement to the Iranian news agency, "We recommend to the American warship that passed through the Strait of Hormuz and went to Gulf of Oman not to return to the Persian Gulf."

This statement came after the Gulf nation of Iran test-fired what they say is a newly designed, virtually undetectable to radar, surface to surface cruise missle during their war games in the strait. Their naval exercises covered approximately 1,250 miles in the area, covering the Strait of Hormuz, the Gulf of Aden as well as part of the Indian Ocean. After that launch, Iranian officials said that the test was to show that the Strait of Hormuz in completely under their control.

The Strait of Hormuz is a bottle-neck in the shipping route between the oil-rich Gulf states and their consumers. The area of the strait is jointly claimed by Iran and Oman. International law requires the two nations to allow safe passage through the waters.

News of Iran’s toughened stance had an immediate effect on the world oil price as prices jumped to $111 a barrel today. The market is showing concerns of the rising tensions and the possible oil disruptions that can come of any new conflict in the Middle East.

A leading Iranian lawmaker said the the naval exercises were a practice for closing the strait if the United States attempts to enact sanctions that block Iranian oil sales. These are a repeat of the same statements made by the Iranian officials last week.

President Obama has signed the sanctions into law, but has yet to enact them. The sanctions are another attempt to get Iran to back off from its plans to further develop its nuclear program. The program is seen by many as an attempt by Iran to develop nuclear weapons.

Sanctions put in place to obstruct the oil revenues of Iran would be devastating, that country depends on oil to fund 80% of it economy.