After weeks of blockades by Iran and the United States in the Strait of Hormuz, it’s clear the narrow waterway is now pivotal to the outcome of the conflict.
By Chris Ogden for The Conversation
The US has begun to escort ships through the narrow passage, but behind the military manoeuvring lies a deeper development: energy security in the Persian Gulf is in a state of profound flux.
As well as the desire by both Iran and the US to control the global flow of oil, gas, helium and fertilisers from the region, the United Arab Emirates (a key US ally) has withdrawn from OPEC in what’s been called a major blow to the oil cartel.
On top of this, Iran has announced plans to introduce tariffs in the Strait of Hormuz as a form of reparations for the damage caused by the war.
If imposed, these tariffs are estimated to be worth between US$40 billion and $50 billion (NZ$67 billion and $84…
