The US military has vowed to keep the Strait of Hormuz open after Iranian President Hassan Rouhani hinted that he could stop regional oil exports through the crucial trade route.

Captain Bill Urban, a spokesman for the US military's Central Command, told Associated Press that US sailors and its regional allies "stand ready to ensure the freedom of navigation and the free flow of commerce wherever international law allows".

Urban’s comments came after Rouhani said: "The Americans have claimed they want to completely stop Iran's oil exports. They don't understand the meaning of this statement, because it has no meaning for Iranian oil not to be exported, while the region's oil is exported".

Separately, Iranian Revolutionary Guards commander Ismail Kowsari told the Young Journalists Club (YJC): "If they want to stop Iranian oil exports, we will not allow any oil shipment to pass through the Strait of Hormuz”.

The Strait of Hormuz is the only sea passage from the Gulf to the open ocean and is the route through which the vast majority of oil and gas shipments from the GCC countries, Iraq and Iran pass. At its narrowest it is just 54km wide.

If Iran did try to use force to prevent shipments through the Strait of Hormuz it would likely prompt chaos on international markets.

The price of Brent crude rose above $78 after Kowsari’s comments on 4 July.