Shachar Bar-On

With the U.S. military on high alert amid the Iran war, there's a national security crisis closer to home: the state of the American shipbuilding industry. The nation's naval shipbuilding program is bloated and slow, and commercial shipbuilding is near non-existent. Hanwha, which owns one of the only U.S. shipyards still building large commercial cargo ships, has its main shipyard in South Korea.

This is an updated version of a story first published on March 22, 2026. The original video can be viewed here. The war in Iran is highlighting the importance of ships – not just warships but cargo vessels – like those carrying oil or gas trapped near the Strait of Hormuz. But as we first reported in March, American shipbuilding is in shambles, due to decades of shortsighted policies and neglect. Our submarine building program is sluggish. And our commercial shipbuilding is nearly extinct.

Amid attacks from cheaply made Iranian Shahed drones, the U.S. is looking toward new, cost-effective ways to neutralize the threat. A drone attack killed six U.S. service members in Kuwait. To shoot down the drones, which can cost as little as $20,000 each, the U.S. military is using anti-missile interceptors that cost millions. Laser technology is still relatively young and experimental.