Germany once relied heavily on Russia for its natural gas. Japan depended almost entirely on China for rare-earth minerals. The Middle East’s oil and gas primarily passed through the Strait of Hormuz.
However, recent events have shifted these dynamics. Russia’s invasion of Ukraine led to its attempt to use its position as Europe’s leading natural-gas supplier as leverage. As a result, Germany redirected its energy imports from Norway. Similarly, during a territorial dispute, China cut off Japan’s rare-earth minerals supply. This prompted Japan to establish a supply chain independent of China.
Currently, Iran appears determined to capitalize on its control over the Strait of Hormuz, a crucial passage for global oil. The question remains: how long until countries start seeking alternatives?
Analyst Amanda Taub discusses the potential of the strait turning into a less significant asset.
An image from Tehran underscores the region’s tensions.
Exercising Control Repeatedly
Iran has scored at least one victory following conflicts with the United States and Israel. Its strategic hold over the Strait of Hormuz has proven valuable. Before these conflicts, about 20% of the world’s oil traveled through this critical waterway.
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