The United States and Israel are at war with Iran, and the conflict is spreading across the Middle East. Tehran is for the first time imposing a blockade of the Strait of Hormuz, choking off global oil and gas shipping and hoping to raise the costs of attacking the Islamic Republic.
Iran learned to weaponize trade routes by watching its Houthi partners apply those tactics in and around the Red Sea. Since Hamas’ October 7 attacks in Israel, Houthi military pressure on critical shipping lanes has caused economic damage of upwards of $15–$20 billion dollars, as well as significant increases in cargo rates and insurance premiums.