Iran views the Strait of Hormuz as a strategic bargaining chip to exert influence over the U.S. and the global economy [1, 2].
Control over this waterway is critical because it serves as a primary chokepoint for international energy supplies. Any disruption to the flow of oil through the strait could destabilize worldwide markets and create significant economic pressure on Western powers.
The Strait of Hormuz is the narrow waterway situated between Oman and Iran [3]. Approximately 20 million barrels of oil pass through the strait each day [3]. Because of this volume, Iranian strategic planners regard the waterway as a tool to leverage influence over the U.S., and the broader global economy [1, 2].
Sahar Razavi, Director of the Iranian and Middle Eastern Studies Centre, said Iran has seen the Strait of Hormuz as its “bargaining chip,” working as leverage over the U.S. and over the global economy [1].
While Iran utilizes the threat of closure, the U.S. has historically managed its own dependencies on the region. President Donald Trump said the U.S. had been taking "millions of barrels" of oil through the Strait of Hormuz [4].
Different perspectives exist regarding who holds the primary lever in the dispute. Some reports suggest the U.S. is positioning its own economic pressure as the primary tool to urge Iran to sign a deal, rather than Iran's control of the waterway [5]. Others suggest the most powerful weapon for both sides is economic, as each party has the capacity to stop the other’s oil from moving through the strait [2].
“Iran has seen the Strait of Hormuz as its “bargaining chip””
The strategic importance of the Strait of Hormuz transforms a geographic chokepoint into a geopolitical tool. By threatening the flow of 20 million barrels of oil per day, Iran can move a diplomatic dispute into the realm of global economic instability, forcing the U.S. and other importing nations to weigh the cost of diplomatic pressure against the risk of a global energy crisis.
