The writer, an assistant professor at Cornell University, is the author of ‘The Economic Weapon: the rise of sanctions as a tool of modern war’
Iran’s effective closure of the Strait of Hormuz has sent shockwaves through the global economy. The Iranian threat to shipping in the Gulf is widely seen as an asymmetric retaliation against the US and Israel. But Iran has actually replicated a tactic that America has long practised in its use of sanctions: it has turned a key chokepoint in the world economy into a weapon to compel its adversary to de-escalate.
This is not the first time that the Trump administration has faced blowback from an adversary responding with their own economic weapons. Upon returning to office, Trump embarked on an assault on the global trade system by levying hefty tariffs on friends and foes alike. Several US allies succumbed and quickly signed trade deals to preserve their relationship with Washington. But not all countries acquiesced. China held firm and launched a counteroffensive. When new US export controls were unveiled in late 2025, Beijing retaliated by imposing controls on its exports of refined rare earths.