The Strait of Hormuz Remains Open...For Iran || Peter Zeihan

TL;DR

Iran has turned the Strait of Hormuz into a protection racket, charging ships $2M for passage while the U.S. military does nothing to stop it.

Key Points

• 1.Iran has effectively shut down the neutral shipping lane. The normal six-mile navigable channel through the Strait of Hormuz is completely closed; all ships must instead hug the Iranian coastline after receiving clearance from Tehran.
• 2.Iran is running a $2 million-per-ship protection racket through Imam Khomeini Port. Ships must sail to the northern Gulf, dock at the port in Khuzestan near Kharg Island, pay fees, get papers stamped, then sail down the Iranian coast — both inbound and outbound.
• 3.IRGC profits have surged two to three times pre-war levels. Iran has increased oil exports to nearly 2 million barrels per day, added war surcharges, and continues receiving Chinese drone parts through unimpeded shipping — all while the U.S. military watches.
• 4.Trump's dismissal of energy and military analysts left the U.S. blind to this dynamic. Normally, Department of Energy and military analysts would flag these flows up the chain of command, but those positions were eliminated, leaving outside observers like Zeihan to surface the problem.