History And Reality Of Hormuz Crisis

As the conflict between Iran on one side and the US and Israel on the other enters its eighth week, the epicenter of conflict appears to be shifting to the Strait of Hormuz, often referred to as "the coronary artery" of global gas and oil trade. At present, the strategic gateway to global trade is facing an unprecedented supply disruption from the double blockade imposed by Iran and the US, sending the whole system of international trade into a tailspin. The Strait of Hormuz is a narrow choke point in the Arabian Sea, linking the Persian Gulf and the Gulf of Oman. That narrow sea passage plays a vital role in the smooth functioning of the international supply chain, covering 20 to 30 per cent of global sea-borne trade. Since the outbreak of war two months ago, Iran has blocked the Strait as leverage against the US and Israel. This has created a global economic crisis by triggering scarcity of essential goods, most notably petroleum products.

The Hormuz Strait, as one of the most strategic waterways on earth, has a long history of maritime trade and navigation. In ancient times, this region was home to the Kingdom of Hormuz, which thrived as a powerful and vibrant state from the 11th to the 17th century. As a dominant maritime power, it controlled key sea lanes, raising tolls from the ships sailing from the Persian Gulf to the Arabian Sea and taxing luxurious goods like silk and gems in transit. The Kingdom of Hormuz no longer exists but a small island of this name still exists in the Strait. The Portuguese conquered the island in 1507 and it remained as part of the Portuguese empire until 1622, when Safavid ruler Shah Abbas I seized the island by aligning himself with the British. 

Free from colonial control 

This region remained free from any colonial control for over two centuries since then. The British took control of this region in the early 19th century and maintained their dominance until 1971. The Persian Empire was renamed as Iran in 1935 at the request of its ruler, King Shah Reza Pahlavi. Iran's claim on territorial rights over the Strait of Hormuz and its decision to impose tolls on cargo and passenger ships are not new developments. The narrowest stretch of the Strait of Hormuz falls under the territorial sovereignty of Iran and Oman but they have a legal obligation to honour the right to transit for international shipping. Since the outbreak of war, Iran has unilaterally violated these norms, giving safe passage to its allies and other neutral parties, often in exchange for tolls exceeding $200 million, while denying the same right to hostile countries. 

In retaliation, the US has also imposed a naval blockade on Iranian ports, seriously hurting global trade and the economies of many European and Asian countries that rely on the export and import of fuel and other essential goods. The two most powerful military powers of the world have besieged Iran. But it has maintained its control over the Strait of Hormuz, employing asymmetric warfare tactics. It has frequently overwhelmed American and Israeli air defense systems by using inexpensive but lethal drones and missiles. Despite immense international pressure, Iran has maintained a hostile posture and has shown its readiness to further escalate the conflict should the US and Israel launch a new attack.

This war was initiated by Israel and the United States with the demand that the Islamic Republic of Iran abandon its nuclear enrichment project, dismantle its ballistic and hypersonic missiles and dissolve the Iranian Revolutionary Guard Corps (IRGC) - demands that Iran has rejected outright. Throughout the four-week-long war, Iran maintained its "escalation dominance" by resorting to asymmetric tactics. Iran used cheap Shahid drones costing $20 to $50 thousand, forcing the USA and Israel to expend air defense missiles that cost millions of dollars per interception. Iran has also benefited from its strategic partnership with China and Russia. Reports indicate that these powers covertly provided support to Iran by giving access to sophisticated satellite imagery of sensitive American and Israeli military targets during the war.

Spike in energy price 

Iran's blockade of the Strait has brought immense pressure on the oil-rich Gulf countries, whose survival depends on oil revenue. The crisis has also severely impacted the European and Asian countries that import a major portion of oil from Iran.  A recent United Nations resolution legitimising maritime action against Iran failed due to the vetoes of Russia and China. Similarly, the European countries' initiative to form a naval alliance to open the Strait of Hormuz has also seen little progress. Meanwhile, the blockade of Hormuz by Iran and the US counter blockade have caused an unprecedented interruption on international trade system, triggering a sharp spike in global oil and gas prices.

To sum up, the ongoing crisis over the Strait of Hormuz is rooted in long historical, sociopolitical and cultural contexts which the power countries must address to achieve any lasting peace in the region. Any solution that ignores wider historical context and social dynamics is unlikely to find resonance with the people of Iran and the Gulf.  Experts of geopolitical dynamics believe that conflict is not just about irreconcilable differences between powers but rather a clash between the emerging and declining world order. To quote Dr. Leon Goldsmith, senior lecturer of the University of Otago,   "Just as the 1956 Suez Crisis marked the eclipse of the old British Empire, the Hormuz crisis of 2026 may be remembered as a turning point for the US-led global order".

(Dr. Bharadwaj is a former ambassador and former chairperson of Gorkhapatra Corporation. bharadwajnarad@ gmail.com.)