​Changed reality: On India and the Strait of Hormuz

Nations rise to power on the strength of their economies and, by extension, trade. Historically, countries such as the United Kingdom, Japan, the United States and China have combined economic prosperity with maritime dominance. India’s weak shipping sector reflects its geopolitical position. Yet, its seafarers generate billions of dollars in foreign exchange while facing risks from piracy and geopolitical tensions. The recent conflict with Iran showed that control of strategic waterways can be as consequential as economic sanctions. By leveraging the Strait of Hormuz , Iran exposed a critical vulnerability in the global economy. Disruptions to energy flows imposed costs far beyond the battlefield and the economic consequences appear to have played a significant role in shaping the U.S. response. From a shipping perspective and its Hormuz stakes, Iran may have secured strategic gains despite the heavy damage inflicted on it by Israeli and U.S. Even as the attacks on Lebanon cast a shadow over the peace deal, Iran has announced that the Persian Gulf Strait Authority it set up during the war will be the sole authority that will handle Strait of Hormuz transits.