Dubai, Voice of the Emirates – The crisis of Iran’s closure of the Strait of Hormuz has revealed one of the most sensitive weaknesses in the global economy.
It also shed light on a phenomenon that has come to be known as the “weaponization of economic interdependence.”
In this phenomenon, countries exploit vital trade lanes and supply chains as geopolitical pressure tools.
Recent reports from the Wall Street Journal confirm that this structural defect
in the international economy will not be repaired in the near term. Instead, it will require years of strategic restructuring.
Geopolitical “choke points”
The crisis in the Strait of Hormuz is not merely a passing incident concerning the flow of oil; it embodies a strategic shift in how conflicts are managed.
While the ceasefire between Washington and Tehran remains fragile, governments and businesses recognize
that reliance on trade routes that can be closed at any moment has become an existential threat.
In this context, Admiral Giuseppe Cavo Dragone, NATO’s Supreme Allied Commander Europe, warned that the world faces a growing challenge.
Moreover, this challenge requires unprecedented coordination between military institutions and the private sector.
The goal is to counter the exploitation of bottlenecks in global trade.
From dollar dominance to strategic supply chains
Historically, the United States has been the most prominent player in weaponizing
the economy through the dollar’s dominance of the global financial system.
However, the landscape has changed with the entry of new players;
China has emerged as a powerful force through its control of rare earth supply chains.
These vital materials are irreplaceable in the semiconductor, jet engines, and advanced technology industries.
As for Iran, it added a different dimension by exploiting its geographical location.
Closing the Strait of Hormuz represents an asymmetric but highly effective pressure tool against American military superiority.
As a result, this gives Tehran the ability to influence global energy markets directly and significantly.
The illusion of liberation from dependency
Although countries such as the United States and Japan have invested billions of dollars to create mining and refining capabilities outside China,
the report notes that economic “untangling” is an extremely complex process.
Japan provides a stark example; Despite its continuous efforts since 2010 to reduce
its dependence on Chinese metals, Tokyo still imports about 60% of its needs from Beijing.
In contrast, China itself is suffering from similar pressures.
US restrictions on exports of advanced semiconductor technologies have slowed its growth in the artificial intelligence sector.
In addition, this reflects a state of “toxic interdependence” that affects everyone.
The next challenge: building resilience
Political economists, including Abraham Neumann, author of a book on the weaponization of economic dependency,
argue that the greatest challenge lies in avoiding the “new dependency trap.”
For example, the Russian-Ukrainian war led to a shift from dependence on Russian gas to dependence on American natural gas.
Meanwhile, China maintains a dominant position in green energy and battery supply chains.
The Wall Street Journal report concludes that, despite all efforts at diversification,
the global economy remains constrained by a limited number of strategic bottlenecks.
Building a more independent and resilient system requires more than just massive investments.
It demands sustained political will that recognizes that the transition away from these entrenched dependencies will take many years.
Furthermore, energy and trade security are no longer purely economic matters.
They have become a cornerstone of national security in an increasingly polarized world.
