Iran has vowed to retaliate for US air strikes on its nuclear facilities, and has two main options: attacking American forces in the region, and closing the strategic Strait of Hormuz.

An advisor to Iran's supreme leader issued a warning on Sunday, saying any US base in the region that takes part in attacks was a "legitimate target".

Disrupting traffic through the narrow Strait of Hormuz, a vital route for oil and gas, would send energy prices soaring in a global inflationary shock.

Closing the waterway would be "extremely dangerous," Kaja Kallas, the European Union's top diplomat, said on Monday.

AFP looks at the two scenarios and their possible implications.

The narrow, U-shaped seaway snaking between Iran and the Arabian Peninsula is the gateway for Gulf energy shipments to global markets, carrying one-fifth of the world's oil and liquefied natural gas exports.

Closing the 50-kilometre (30-mile) wide channel could spike oil to $120 a barrel, according to Deutsche Bank research, raising prices of transport, food........

© International Business Times