Strategic Control of Energy Trade: Iran's Economic Leverage Through the Strait of Hormuz in Times of Conflict

Abstract

This article examines Iran's strategic control over energy trade and the Strait of Hormuz as a powerful instrument of economic leverage during recent war. It argues that Iran's geographic position at one of the world's most important oil passage has enabled it to influence global energy markets, and strengthen its bargaining position in the time of war. The article also discusses the historical evolution of Iranian relations with the United States and Israel, the 1979 Islamic Revolution, and the subsequent breakdown of diplomatic ties. It also explores how the nuclear issue, sanctions, proxy conflicts, and repeated military confrontations have expanded the rivalry. The article further analyses recent escalations, including the Iran–Israel clashes of 2025 and recent Iran-US-Israel war in 2026, to show how Iran uses the Strait of Hormuz as a tool of deterrence and negotiation. At the same time, it highlights the limitations of the strategy, especially Iran's own dependence on Hormuz for oil exports and the vulnerability of its energy infrastructure to foreign strikes and sanctions.

Keywords: Iran, US, Islamic Revolution, Strait of Hormuz, Sanctions