Iran Risks Losing Hormuz Leverage Within 5 Years as Gulf States Build Bypass Routes
Updated
Updated · Bloomberg · Jul 16
Iran Risks Losing Hormuz Leverage Within 5 Years as Gulf States Build Bypass Routes
3 articles · Updated · Bloomberg · Jul 16
Summary
Iran’s pressure on the Strait of Hormuz could erode its own strategic leverage over roughly five years if it keeps squeezing the oil chokepoint.
That risk stems from a likely response by neighboring Gulf states, which would accelerate alternative export routes that bypass the strait and reduce Tehran’s ability to threaten traffic.
The current squeeze has given Iran leverage over President Donald Trump even though the waterway was not closed before the conflict began and Washington is now trying to secure freer passage.
Mohammad Bagher Ghalibaf, Iran’s parliament speaker and a top negotiator, signaled the same concern, saying the strait retains value only if traffic keeps rising rather than shrinking.