Imposing more sanctions against Iran could push Tehran to retaliate by reducing its crude oil output, a global financial firm says.

According to JP Morgan, growing tensions between some Western countries and Iran over the country's peaceful nuclear program could stir up concerns over a possible interruption of crude oil supplies.

Sung Yoo, oil strategist at J.P. Morgan, a financial institute providing assessment in investment banking, said on Monday that if "there was a reduction of Iranian crude output, it would be kind of muted given that OPEC currently has over 5 million barrels per day of spare capacity."

"The biggest risk would be any retaliation to the exports traveling through the Strait of Hormuz," he added.

The Strait of Hormuz is a narrow, strategically important waterway between the Gulf of Oman in the southeast and the Persian Gulf.

According to the US Energy Information Administration, an average of about 15 tankers carrying 16.5 to 17 million barrels of crude oil normally pass through the strait every day, making it one of the world's most strategically important choke points. This represents 40% of the world's seaborne oil shipments and 20% of all oil shipments worldwide.

MVZ/TG/MB