Turbulence Episode 18: Strait Outta Hormuz w/ Laleh Khalili
Mar 31, 2026
Laleh Khalili, a professor of Gulf studies and author on shipping and extractive capitalism, breaks down Iran’s control tactics in the Strait of Hormuz. She discusses drone and missile use, insurance-driven halts to shipping, why Hormuz is a strategic choke point, conditional toll regimes, and the wider economic and geopolitical ripple effects.
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How Iran Uses Market Friction To Shut Down Shipping
- Iran weaponizes insurance and market mechanics to stop shipping rather than needing to sink every ship.
- Laleh Khalili explains war-risk premiums at Lloyd's spiked, causing tankers and crews to refuse transits and collapsing traffic through Hormuz.
Geography Gives Iran Disproportionate Control Over Hormuz
- Iran exerts geographic leverage because the deepest navigation channels lie along its coast in a narrow 35-mile strait.
- Laleh points out Musandam Peninsula and Qeshm depth advantages let Iran control convoying and chokepoint traffic flow.
Hormuz As A Diplomatic Toll Booth
- Iran selectively issues waivers to ships, turning Hormuz closure into a diplomatic lever.
- Khalili notes India and Spain negotiated passages and Iran even signaled preference for petro-yuan trades to favor allies.
