China and Iran are increasingly using global supply chains and strategic chokepoints to counter the United States, reshaping economic warfare and exposing Washington’s vulnerabilities, according to a report by The Washington Post that examines how, when, where, why and how these tactics are playing out in today’s shifting geopolitical landscape.The United States is no longer the sole power capable of leveraging economic chokepoints, the report argues.China used its dominance over rare earth minerals, critical for both civilian and military technologies, to retaliate against US tariffs by restricting exports. The move caught US President Donald Trump off guard, with the president calling it “a real surprise” on social media last April.
Iran, meanwhile, has tightened its grip over the Strait of Hormuz, a vital global oil transit route, effectively disrupting energy flows. The closure triggered a spike in global oil prices and contributed to a ceasefire in its six-week conflict involving the US and Israel.“It turns out that the United States does not have all the choke points. We are in a world where the US simply cannot get away with the stuff that it thought it could get away with,” said Henry Farrell, co-author of “Underground Empire.”
Domestic impact hits American consumers
The economic fallout has extended directly to US households.Fuel prices surged, with gasoline crossing $4 per gallon, while disruptions in the Strait of Hormuz rippled across supply chains. The report noted rising costs in goods such as fertiliser, aluminium, plastics and even mattresses.Food prices have also been affected. Fresh Del Monte’s chief operating officer warned of a sharp increase in produce costs, including bananas, driven by higher diesel prices and the rising cost of plastic resins sourced from the Middle East.
Washington under fire for lack of preparedness
The report highlights criticism of the US administration’s response to these developments.Senator Ron Wyden said the Treasury Department failed to assess the potential energy market consequences of a conflict involving Iran. Quoting Wyden, the report noted that Sriprakash Kothari, nominated to become assistant treasury secretary for economic policy, told committee staffers “that not only did he not perform any work related to energy markets leading up to the war, but that he wasn’t aware of anyone at Treasury who did.”The lack of anticipation has raised concerns about Washington’s ability to respond to rapidly evolving economic threats.
End of the ‘benign’ global economy
Experts say these developments mark a structural shift in the global economic order.“The global economy was designed for the benign environment of the 1990s, when we assumed that China and Russia would be our friends. But we’re living in a period of intensifying geopolitical competition,” said Edward Fishman, author of “Chokepoints.”Commercial interdependence, once seen as a stabilising force, is now viewed as a vulnerability. Supply chains that powered globalisation are increasingly being used as tools of leverage.
Race to build economic defences
In response, major economies are moving to insulate themselves.The United States, China and Europe are investing in domestic production of critical goods and diversifying supply chains to reduce reliance on geopolitical rivals. US Secretary of State Marco Rubio has warned that dependence on foreign supply chains could limit Washington’s strategic choices.“There is virtually none of the leading-edge industries of the 21st century in which we don’t have some level of vulnerability, and it’s become one of the highest geopolitical priorities that we now face,” Rubio said.
A transformed global landscape
The report concludes that while China’s dominance in areas such as rare earths may gradually decline as the US ramps up domestic mining efforts, the broader shift is irreversible.“This process is just going to keep going on until you have a new global economy,” Fishman was quoted as saying.With nations racing to build economic resilience, the era of interdependence as a guarantee of stability appears to be giving way to one where it can be used as a strategic weapon.
