Geopolitical Shifts Amid Resource Supply Chain Vulnerabilities

Germany previously relied heavily on Russian gas. Japan depended on China for rare-earth minerals. Much of the Middle East’s oil and gas had to navigate through the Strait of Hormuz.

The geopolitical landscape changed when Russia invaded Ukraine, leveraging its position as Europe’s primary gas supplier. In response, Germany shifted to sourcing gas from Norway. During a territorial dispute, China halted Japan’s rare-earth mineral supply, prompting Japan to establish a China-free supply chain.

Iran maintains control over the Strait of Hormuz, a crucial passage for approximately 20% of global oil. The article explores whether this control may eventually diminish in significance.

In Tehran last week. Photo Credit: Emile Ducke for The New York Times

By Amanda Taub, the article discusses Iran’s strategic advantage following conflicts with the U.S. and Israel. Despite these tensions, Iran’s control over the Strait of Hormuz remains a significant geopolitical asset.