Hormuz blockades test foundational principle of global commerce

📌 Summary:

• Iran's closure of the Strait of Hormuz highlighted risks of maritime chokepoints to international trade

• Indonesian Finance Minister publicly pondered levying transit tolls on Strait of Malacca; later retracted citing impracticality; Indonesia, Malaysia and Singapore reaffirmed commitment to keeping waterway open

• UNCLOS & Transit Passage: Freedom of navigation through international straits (transit passage right) is codified in UNCLOS — Iran legally cannot close Hormuz; ASEAN nations cannot impose Malacca tolls

• Causal Chain: War conditions override legal frameworks → Iran faces existential threat from US-Israeli attack → resorts to Hormuz closure as strategic lever → any further escalation will harden Iran's assertion over the Strait

• Historical Context: Even during Iran-Iraq War and 12-Day War, Iran had stopped short of full closure; this closure is unprecedented under current threat perception

• Global Stakes: Critical chokepoints include Hormuz, Malacca, Suez Canal, and Bab al-Mandab — much of India's and the world's trade flows through these

• India's Vulnerability: Heavily dependent on Gulf energy imports and trade through Hormuz; disruption of free passage directly impacts energy security and trade costs

• Recommended Role for India: Take lead in reinforcing law of the sea; ensure free and safe passage in international waters; work with like-minded partners to prevent chokepoints from becoming instruments of coercion