Why does international shipping die? Think it through logically. Countries controlling key waterways are in no way served in the long run by keeping them choked off. A new equilibrium would probably mean some relatively modest ‘transit fee’; a buck a barrel or what have you. Shippers then just price that rent in. Costs go up a bit, demand reduces a bit accordingly… from a strict economic standpoint, it’s perfectly manageable, even if it’s economically inefficient rent seeking.
The problem is, no nation/society will tolerate the "transit fee" impose by the crazies. Make no mistake, the crazies will be the ones imposing the "fees". Singapore isn't about to impose a fee on the SoM, but some crazy religious sect in Indonesia might... Particularly if they realize that the world won't punish the Houthi or Iran for doing the same.
Now, do I recognize that as lawful or legitimate? Absolutely not. Legally, UNOS and conventional international law firmly recognize the transit passage rules for such straits. From a practical standpoint, I’d rather not the extra couple cents per liter at the pump that would mean. I fully agree with you on the principle of the matter. But I personally don’t have anything I can do about it. We’ve seen in the past few years that international law increasingly means only what those with leverage and power decide it means.
The problem is, it won't be "cents on the litre" it will be a choke-hold, that increases as our ability to absorb it increases.
Why would Iran stop at what you're comfortable with, when they can charge what it can force you to absorb? Then add-in that the people doing this hate you and what you believe, and will use their new found fortune to fund the people who will kill you in your bed.
Can big states do anything about a new order of maritime extortion? Well, the biggest state in the world in terms of raw power seems flummoxed in trying to impose its way militarily. Ironically, we had an order of free transit in the Strait of Hormuz, and the U.S. chose to launch a war that has very predictably upended that.
Yes they can. What they can't do is fix it while we tie our hands behind our back playing to rules we wrote 80 years ago... And eventually, we will re-discover our acceptance of "collateral damage", or we will collapse.
ran of course is a rogue state already substantially severed from a lot of global systems. They started with less to lose. Am I worried about other maritime straits being similarly extorted? Well, Bab el Mandeb, for sure. It’s already in play largely thanks to this same regional conflict. Malacca? Gibraltar? Dover? Danish? I don’t offhand see many other countries who would benefit in the balance.
They don't benefit, until the world backs down... Then out of nowhere, every strait has an "environmental" fee to pay. Some will be enforced by weapons, others by trade deals... Regardless, the worlds oceans become less free and imperial control of water becomes more important.
This will balance out. New weapons have upended things; new defenses and countermeasures will catch up. I’m just calling it as I see it now.
It will balance out, but I suspect the people wishing for a Trump defeat haven't really considered the costs. They see a Trump war, and wish for a loss, never considering what we all loose if he does.
Edit: Not to be too dramatic, but freedom of navigation is the underpinning of our entire world. It isn't something we can just walk away from unless we plan to restructure our society.