Months ago, I theorized Iran closing the Straits would backfire because, once used, threats lose power. First, it would force all their adversaries to find workarounds. Second, the unknown ramifications suddenly become known and get priced in.
Apparently, this channel cannot be seen from Iran and thus allows Persian Gulf oil through, while Iranian oil gets stuck in port due to the US Navy blockade.
Wow.
That was quick. I figured pipelines across the desert to the Red Sea would be the solution. But they found an even better one.
I just learned yesterday, there was a similar instance in history when this occurred: during the Suez Crisis in the late 50s and early 60s. Egypt took control of the canal and closed the shipping lanes to the Persian Gulf, thus flexing their territorial muscles for political and foreign policy objectives like Iran of today. What happened? Global ships found an alternative route around the Cape of Good Hope in Africa, but to make this route economically viable, they started building "supertankers," enormous oil ships. And guess what they found? It became cheaper to transport larger distances with supertankers than with smaller ships through Suez. Woops! Egypt ended up screwing themselves over in the long run.
So be careful how you play your cards.
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