Hormuz Straitjacket: US-Iranian standoff

The cauldron of tension between Iran and the west is simmering. It seems a slightest increase of heat could cause it to boil over into an all-out war.

It does not appease Washington that the international nuclear watchdog is on site closely monitoring Iran’s nuclear activities.

“Are they trying to develop a nuclear weapon? No. But we know that they're trying to develop a nuclear capability. And that's what concerns us. And our red line to Iran is ‘Do not develop a nuclear weapon,’” said US Secretary of Defense Leon Panetta.

Meanwhile, Iran’s main source of livelihood – its oil export – is in danger. The US is imposing fresh sanctions that will dramatically complicate transactions through Iran’s Central Bank. Iran is also close to losing Europe as a customer.

Cornered by crippling sanctions, Iran threatened to block the Strait of Hormuz – a vital oil artery through which one sixth of the world's oil is shipped.

The US has replied by moving its Fifth Fleet to the region, saying if Iran goes for it, they will attack.

Experts say the policy of isolating Iran may lead to other threats from Tehran and a possibility that one day they will go through with their threats.

Washington signals that it is ready, or at least it wants everybody to believe that it is ready.

Some believe it is just a war of words, and neither side will go for an all-out conflict, considering what a disaster it would be for the whole region. It may be a war of words, but actions are already showing.

Thousands of US troops are being deployed to Israel. An American citizen in Iran has been sentenced to death, convicted of espionage.

A look back in history – the assassination of Archduke Franz Ferdinand of Austria, the heir presumptive to the Austro-Hungarian throne, in 1914 set in motion a series of events that led to World War One and then, World War Two.

With regards to Iran today, the possible blocking of the Strait of Hormuz could become that trigger. Or it could be the killing of the American citizen.

Iran might feel cornered, and therefore make drastic moves. Right now it is a war of words. But one bullet fired and the powder keg could blow up. The question is: what is going to provide that deadly spark?