Freedom of Seas Is Over: How Iran Changed Global Trade Rules Overnight

Special correspondent of Pravda.Ru Daria Aslamova interviewed Doctor of Economics, Professor Andrey Kolganov about how Iran seized the valve of global trade, why freedom of the seas no longer exists, what lessons the Black Sea teaches us, and why wars are still being fought under outdated rules. How Iran Became the Main Overseer of the Strait of Hormuz Q: The war with Iran continues for two months now. The Strait of Hormuz is closed. But it will reopen already on Iran's terms. Analysts estimate that transit fees through the strait could bring Iran about $100 billion a year. Are we witnessing an extraordinary geopolitical event? A: The situation is indeed quite unexpected. When analysts considered the possible economic consequences of a clash between the US-Israel coalition and Iran, the option of blocking the Strait of Hormuz was discussed — but it was assumed to be temporary during the conflict. The conflict would end, and everything would return to normal. Now the situation has turned in a different direction. Iran claims it will now control the Strait of Hormuz, jointly with Oman, which lies on the opposite side. In fact, this resembles the Suez Canal model. Egypt charges for passage through Suez, Panama charges for the Panama Canal, and now Iran together with Oman will charge for Hormuz. In their hands is the valve regulating a significant portion of international trade.