Iran and China Exploit Economic Choke Points to Counter US Pressure
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Iran and China Exploit Economic Choke Points to Counter US Pressure

03 April, 2026.USA.14 sources

Key Takeaways

  • Iran and China exploit supply-chain choke points to counter US pressure.
  • Hormuz Strait disruption risks near-halt oil transit to Asia.
  • Global chip supply chains at risk amid Iran-China tensions and US pressure.

Choke Points as Economic Weapons

Iran and China have responded to Trump’s aggressive use of economic and military power by weaponizing choke points.

Iran controls the Strait of Hormuz; China controls rare earth mineral supply chains.

Image from BBC
BBCBBC

After the US-Israeli campaign triggered closure of the Strait, Brent crude surged towards $140 per barrel.

China implemented a rare earth export license system, aiming to disrupt key industries.

Hormuz Closure Shakes Global Economy

The closure of the Strait of Hormuz created a severe and prolonged supply shock.

Brent crude surged over $110 in March and climbed toward $140 in early April.

Image from CBS News
CBS NewsCBS News

The US granted a 30-day waiver for Iranian oil already in transit.

Trade data showed significant slowdowns across industries.

China Builds Iran-Centric Trade Corridor

Iran’s IRGC launched temporary air corridors between Tehran and Beijing.

Beijing blocked rare earth exports to US allies including Japan, Taiwan, and South Korea.

The rare earth controls were framed as a defensive countermeasure.

Global Supply Chains and Politics

China’s rare earth move hit the auto industry swiftly.

Toyota warned the shutdown would affect 96% of its hybrid output.

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Lebanon DebateLebanon Debate

The escalating use of chokepoints complicated US efforts to control the narrative.

Public opinion abroad increasingly opposed Trump’s Iran war.

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