Paul Baris

The Strait of Hormuz conflict is more than an energy story — it’s a stress test for the increasingly interconnected global economy.

The current crisis in the Strait of Hormuz has been framed by media as an energy story. Roughly a fifth of global oil flows through this narrow passage, so any disruption understandably triggers immediate concern about price spikes and supply shortages. But focusing only on the oil implications misses a deeper reality: the Strait is not just an energy chokepoint—it is a systemic pressure point for global supply chains.

The United States recently suspended the long-standing "de minimis" tariff exemption, which allowed most packages valued at $800 or less to enter the country duty-free with minimal paperwork. The exemption, known as Section 321 of the Tariff Act, was suspended on Aug. 29. This policy change marks a major shift in U.S. trade policy, moving from broad trade facilitation toward stricter enforcement and protectionism.