A Washington Post report examines how, when, where, why and how these tactics play out in today’s changing geopolitical landscape, where China and Iran are increasingly exploiting global supply chains and strategic bottlenecks against the United States, reshaping economic warfare and exposing Washington’s vulnerabilities.The report believes that the United States is no longer the only country capable of breaking through economic bottlenecks.China has used its dominance of rare earth minerals, which are vital to both civilian and military technology, to retaliate against U.S. tariffs by restricting exports. The move caught U.S. President Donald Trump off guard, calling it a “real surprise” on social media last April.
At the same time, Iran has strengthened its control over the Strait of Hormuz, an important global oil transportation channel, effectively disrupting energy flows. The shutdown triggered a global surge in oil prices and prompted a six-week ceasefire in the conflict involving the United States and Israel.“It turns out the United States doesn’t own all the bottlenecks. We’re in a world where the United States simply can’t get rid of what it thinks it can get rid of,” said Henry Farrell, co-author of “Underground Empire.”
Domestic fallout hits U.S. consumers
The economic impact has been felt directly through American families.Fuel prices soared, with gasoline prices topping $4 a gallon, and disruptions in the Strait of Hormuz rippled throughout the supply chain. The report points out that the cost of commodities such as fertilizers, aluminum, plastics and even mattresses is rising.Food prices are also affected. The chief operating officer of Fresh Del Monte warned that the cost of agricultural products, including bananas, has risen sharply due to higher diesel prices and rising costs of plastic resin from the Middle East.
Washington criticized for lack of preparation
The report highlights criticism of the U.S. government’s response to these developments.Senator Ron Wyden said the Treasury Department failed to assess the potential impact of a conflict involving Iran on energy markets. The report quoted Wyden as saying that Sriprakash Kothari, who was nominated to serve as assistant Treasury secretary for economic policy, told committee staff that “not only had he not done any work related to energy markets before the war, but to his knowledge, no one in the Treasury Department had done any of that work.”“The lack of expectations has raised concerns about Washington’s ability to respond to rapidly changing economic threats.
The end of the “virtuous” global economy
Experts say these developments mark a structural shift in the global economic order.“The global economy was designed for a benign environment in the 1990s, when we thought China and Russia were going to be our friends. But we live in a period of heightened geopolitical competition,” said Edward Fishman, author of “The Bottleneck.”Business interdependence, once seen as a stabilizing force, is now seen as a vulnerability. The supply chains that drive globalization are increasingly used as leverage tools.
Race to build economic defenses
In response, major economies are adopting self-isolation measures.The United States, China and Europe are investing in domestic production of key commodities and diversifying supply chains to reduce dependence on geopolitical rivals. U.S. Secretary of State Rubio warned that reliance on foreign supply chains could limit Washington’s strategic options.“Nearly every frontier industry in the 21st century has some degree of vulnerability, which has become one of the highest geopolitical priorities we face now,” Rubio said.
The global landscape is changing
The report concludes that while China’s dominance in areas such as rare earths may gradually decline as the United States ramps up domestic mining efforts, the broader shift is irreversible.“This process will continue until a new global economy emerges,” Fishman said.As countries race to build economic resilience, the era of interdependence as a guarantee of stability appears to be giving way to one that can be used as a strategic weapon.
