Indian Council of World Affairs

Abstract: Iran’s weaponisation of the Strait of Hormuz to disrupt supply chains has ensured that the ongoing conflict involving Iran, Israel, and the United States is no longer viewed just as a conventional regional crisis.  

Introduction

Geography shapes the geopolitical perspectives of nations and influences how they respond to international developments. Geographical factors shape historical experiences, create trade linkages, and influence cultural and social interactions. It plays a significant role in influencing nations’ security perceptions, strategic ambitions and responses to external developments. In military planning, it remains a fundamental point on which planners rely to build operations and to gain strategic advantages. The current crisis in the Middle East has not only brought the importance of geography to the forefront but has also reinforced the strategic significance of geographical features, as instruments of leverage in negotiations.

The Strait of Hormuz and the Importance of Geography

The strategic importance of the Strait of Hormuz cannot be overstated. The critical maritime chokepoint carries around a quarter of the global seaborne oil trade and significant volumes of liquefied natural gas and fertilisers.[i] It also serves as a vital route for the import of food, medicines and technological supplies for the Middle East nations.

Bounded to the north by Iran and to the south by Oman and the United Arab Emirates (UAE), the corridor - only about 50 km wide at its entrance and exit and 33 km wide at its narrowest point - connects the Gulf with the Arabian Sea. The United Nations Convention on the Law of the Seas (UNCLOS) allows countries to exercise control of territorial seas up to 12 nautical miles from their coastline. At the narrowest point, the Strait of Hormuz and its shipping lanes lie entirely within Iran and Oman’s territorial waters.

The ongoing crisis in the region has disrupted shipping flows through this narrow passage. The resulting ripple effects go far beyond the region, affecting energy markets, maritime transport and global supply chains.[ii] Iran has demonstrated its ability to disrupt shipping through the Strait in a cost-effective manner using drones, fast attack boats, mines and threat of missile attacks. These challenges posed by Iran have in turn raised insurance costs and charter charges, making it financially burdensome for shipping companies to operate here. This has disturbed energy exports of not just Iran but other Gulf States, that rely heavily on energy exports for their economies.

Disruptions in the Strait have impacted the economies globally. Rising energy, fertiliser and transportation costs are increasing the cost of living and fuelling inflationary pressures disproportionately, affecting the vulnerable sections of society and fragile economies. In Asia, several governments are encouraging work from home and a reduced work week in an effort to conserve fuel. In Africa, countries are urging citizens to reduce electricity consumption while in Europe, states are debating fuel rationing measures. While all nations are redirecting their efforts towards alternative energy sources for their economies, this transition will take time and lead to increased costs. For countries that are still recovering from the economic fallout of the Covid pandemic, the current shock will make recovery increasingly difficult.

Iran is reported to be in negotiations with Oman to charge a transit fee for the use of the Strait. For most nations, this might be an economically viable option in the long run if it translates to the safe passage of ships carrying critical energy resources. There are also reports in the media that Iranian authorities are considering seeking a licencing fee for the use of undersea data cables to generate additional finance. This would not only monopolise the repair and maintenance of the undersea cables in Iran but may also mean that companies would have to comply with Iranian laws.[iii] While this may generate much needed finances for the Iranian economy, the question facing  global policymakers is not whether Iran can impose these levies but if it has the willpower to do so and, if it does, what the appropriate response should be.  

The above shows that, Iran has effectively weaponised its geography. Today it occupies a critical chokepoint that controls both energy and data flows, two components that are critical for economic development. By doing so, Iran has transformed what was considered a regional crisis to a global crisis, making all nations stakeholders.

Its tactics have also demonstrated how smaller and less militarily powerful states can effectively deter powerful nations and leverage their geography to gain negotiation advantage. The ongoing crisis in the Middle East is no longer limited to armaments and stockpiles, but it is about oil and possibly data, both of which are closely tied to Iran’s unique geographical position.

Conclusion

Geography has emerged as a powerful tool for Iran in this conflict, while simultaneously exposing it to vulnerability for its adversaries. The United States in the past has used its military might to re-establish the flow of maritime traffic through the Strait; however, President Trump’s calls to allies and partners to help secure the Strait have generated a muted response. The fear is that even with traffic restored, it will take months for energy prices to normalise and for citizens to see the benefits, leaving them to face prolonged inflationary pressures.

The weaponisation of geography is an old technique of warfare; nonetheless, Iran’s use of its geography to gain leverage, not just against its immediate adversary but also the global economy, is perhaps the first multidimensional use of this practise. Iran’s capacity to sustain prolonged disruption carries the risk of severe retaliation and economic self-damage. Israel and the United States, for their part, cannot fully neutralise the inherent vulnerabilities of global chokepoints. Meanwhile, international mitigation mechanisms cannot indefinitely offset the combined impact of physical damage and logistical disruption.[iv] This situation has placed the international system under considerable stress.

At present, the status quo in the Strait of Hormuz has been disrupted and remains unclear whether a future ceasefire will restore the previous norm and freedom of navigation. Therefore, countries will now have to plan for diversification of their energy routes and sources, taking into account the changing global dynamics.

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*Dr. Stuti Banerjee, Senior Research Fellow, Indian Council of World Affairs, New Delhi.
Dislaimer: Views expressed are personal.

Endnotes

[i] UN Trade and Development, “Strait of Hormuz disruptions: Implications for global trade and development,” https://unctad.org/publication/strait-hormuz-disruptions-implications-global-trade-and-development, Accessed on May 22, 2026.

[ii] Ibid

[iii] France 24 News, “Digital bottleneck: How Iran wants to use internet access as leverage in the war,” https://www.france24.com/en/middle-east/20260520-digital-bottleneck-how-iran-wants-to-use-internet-access-for-leverage-in-the-war,  Accessed on May 22, 2026

[iv] Professor Tan Kong Yam, “The Iran War and the Weaponisation of the Global Energy System,” https://rsis.edu.sg/rsis-publication/rsis/the-iran-war-and-the-weaponisation-of-the-global-energy-system/, Accessed on 22 Amy 2026