I just want to preface with this: what I’m saying here is me ‘calling it as I see it’. I don’t
want this to play out like I’m describing it might in any of my comments. I
want Iran to be rid of its tyrannical theocracy. I
want Iran to have no prospect of developing nukes. I
want Iran (and everyone else) to abide by international law. I
want critical infrastructure like refineries and gas plants and power plants and bridges and desalination plants to not be attacked. I
want a rapid, peaceful negotiated resolution to all this. I would have
wanted this to not happen at all. But some ships (forgive me) have sailed. So I’m giving my best assessment of what’s next based on the demonstrated abilities, intentions, and means of the parties, and my best reckoning of where their interests lie.
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.
Presupposing this is how it plays out: No nation/society would
accept them as a principle. Most nations/societies are frankly powerless to do anything about it. Individual nations (China?) may negotiate, with or without coercion, side deals. Individual shippers though absolutely would
tolerate them as long as they’re predictable, reliably work to allow navigation to happen at all, and are priced at a level that can be passed on to customers- and don’t bring legal jeopardy (like sanctions or insurance revocation) in compliance. Companies just want to do business and earn money, and can and will work with bad rules that are nonetheless consistently applied.
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?
Yeah, could be. Speaking objectively that’s just a pricing decision by the extorter. Fundamentally it’s not that different from the protection rackets organized crime have successfully run for pretty much ever. Iran would probably try to maximize how much it could make while keeping it within what shippers can succesfully pass on.
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.
I think they’d be using most of their newfound fortune to rebuild their economy and military capabilities, more with an eye to defending their own sovereignty. But unfortunately yes, some of any windfall they gain will be used maliciously. Trying to curb Iran’s ambitions is how this all started to begin with. The choices made to that end got us to where we are now.
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.
I don’t think the current relevant leadership - Trump, Hegseth, etc - really give two shits about collateral damage in Iran. If they knocked the country back to the Stone Age and killed a couple million of them, a segment of their political base would drunkenly cheer. But moral reticence isn’t the issue. The issue is that if Iran sees their own civil critical infrastructure being hit, anything they can reach will be considered fair game. Significant portions of the Gulf could be made uninhabitable to knocking out desalination plants. Iran could starting systematically knocing out every oil refinery, gas liquefaction facility, loading terminal, desalination plant, power plant, and data center their weapons can reach. If the U.S. wants to go Ruhr Valley on Iran, Iran still has considerable ability to retaliate in kind. What would wholesale destruction of Gulf energy infrastructure do to the world economy… or Republicans’ chances in the midterms?
And of course there’s the cost in armaments and in the lives of troops, both of which stand to be consumed in large numbers depending on how this conflict evolves and escalates. At some point the U.S. will have to put more aircraft back over Iran as their standoff stocks dwindle. This is more political than strategic, but how would the U.S. administration politically handle a few downed U.S. aircrew captured hundreds of miles into Iran, and paraded as prisoners on TV/online after being moved effectively out of reach?
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 world’s oceans become less free and imperial control of water becomes more important.
Yup, this is the apple cart that has been upset. I hate it, but the risk you describe is a real one. International law works as long as everyone who matters agrees it does. There’s definitely a risk of normalizing rent seeking behaviour that changes norms relating to transitive of straits. This wasn’t on the table until this latest conflict. Though again I’m not worried about most states doing this, because states with normal diplomatic and economic relations with the world probably have too much to lose to make it worth it. Iran’s in a different position there.
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.
Anyone on ‘our side’ wishing for a loss is stupid. We should all
want the U.S. to achieve the objectives of reopening the Strait of Hormuz. I think a lot of us just don’t see their current strategy, or threatened military escalation, successfully doing so. America seems to have gotten itself in a predicament where none of the paths out bring them to a position that’s advantageous compared to where they were in January.
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.
I agree. We’re in a pickle brought about by evolutions in weaponry and by utterly imbecilic military adventurism by the Americans.
Again, I don’t want any of this. I’m not making a confident prediction that tolls on Hormuz will happen…I was just addressing the realistic possibility of it, and trying to be objective about the cards Iran holds.