Less than a decade ago, Germany relied heavily on Russia for its gas supply. Similarly, Japan depended on China for nearly all its rare-earth minerals. Most oil and gas from the Middle East journeyed through the Strait of Hormuz.

When Russia invaded Ukraine, it tried to capitalize on its position as Europe’s main natural-gas provider. In response, Germany shifted its focus to Norway. A territorial dispute led China to halt Japan’s rare-earth mineral supply. This prompted Japan to develop a supply chain independent of China.

Iran maintains control over the Strait of Hormuz, a strategic waterway for global energy transportation. However, the question arises: how sustainable is its control? Will countries eventually lean towards alternative routes?

Amanda Taub explores whether the strait is becoming less of an asset. Iran’s leverage over the Strait of Hormuz is significant, as it remains a crucial passage for about 20% of the world’s oil before recent geopolitical tensions.