SBY tells UN to address Strait of Hormuz matter seriously

President Susilo Bambang Yudhoyono raised concerns over Iran's threat to close the Strait of Hormuz, the biggest global checkpoint for seaborne oil trade, which he said could affect the global economy, including Indonesia.

"Recent developments in the global geo-political situation, mainly in the Middle-East region, have triggered massive issues that could affect the global economy," President Yudhoyono told a Cabinet meeting at the Presidential Office on Thursday.

"Lately, two regions have been taken into bigger account – the Strait of Hormuz and the Korean Peninsula. I have given a very serious attention to the tensions triggered by Iran's nuclear program. If these issues are not addressed properly, they could have negative impacts for the world," Yudhoyono added.

He added he would push the UN to play its role in addressing the issues peacefully.

"What Indonesia wants is for the problem to be settled without a militaristic approach," Yudhoyono said.

Yudhoyono said the most threatening aspect of the tension in Hormuz would be the possible rise of oil prices.

"Any tension in the Middle East can increase oil prices, even without significant changes in supply and demand," he said.

"Therefore, I have sent an official letter to UN Secretary General Ban Ki-moon to take immediate steps to address the problem," Yudhoyono said.

Iran has threatened to block oil shipments through the Strait of Hormuz should the US and the European Union impose sanctions on their crude oil exports.

The sanctions were aimed at pressuring Iran to abandon its suspected nuclear weapons program.

The Strait of Hormuz reportedly serves as a significant route for oil cargoes from the Persian Gulf.