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Iran War Exposes US Maritime Trade Vulnerabilities

Financial Times Companies •
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The Iran conflict has revealed critical weaknesses in American maritime trade, with the Strait of Hormuz effectively blocked and global shipping brought to a standstill. The disruption of energy supplies through the Persian Gulf and Red Sea attacks has exposed how quickly international commerce can collapse under geopolitical pressure. This comes after decades of warnings about supply chain fragility.

Historical events like the 1999 Taiwanese earthquake, 2011 Japanese tsunami, and COVID-19 disruptions should have prepared the US for such crises. Yet President Trump's recent Jones Act waiver demonstrates the lack of preparedness, forcing America to rely on foreign vessels for domestic shipping. The century-old law, designed to protect US shipbuilding, has instead created an industry unable to compete globally.

Vanderbilt University research shows US-built ships cost three to eight times more than foreign alternatives, while Chinese shipping now dominates international waters. The debate over repealing the Jones Act highlights a fundamental choice: short-term cost savings versus long-term industrial resilience. As maritime trade becomes the new battleground, America must reconsider its approach to naval and commercial shipbuilding, potentially partnering with allies to create more nimble, dual-use vessels that can withstand modern warfare's asymmetric threats.