Chokepoints Review: Is Economic Warfare Here to Stay?

Why It Matters

Economic warfare now dictates diplomatic outcomes and supply‑chain risks, forcing corporations and policymakers to prioritize economic security alongside traditional defense.

Key Takeaways

• US sanctions compelled Iran into the 2015 nuclear deal
• Secondary sanctions made global banks avoid Iranian trade
• Iran’s Hormuz Strait blockade shows rivals can wield chokepoints
• Fishman predicts economic warfare will redraw geopolitics and curb globalization

Pulse Analysis

Economic sanctions have eclipsed conventional military tools as the United States’ go‑to lever in global power contests. In *Chokepoints*, former State Department sanctions officer Edward Fishman maps how the U.S. dollar, cutting‑edge microchips and energy logistics have become modern chokepoints that can be tightened or released at will. By chronicling the 2015 Joint Comprehensive Plan of Action, Fishman illustrates how secondary sanctions forced even the world’s biggest banks to shun Iranian trade, turning financial isolation into a decisive bargaining chip. This shift signals to businesses that compliance, treasury risk management and geopolitical intelligence are now core strategic functions.

The Iran case study underscores the tangible impact of economic warfare on markets. When Washington imposed secondary sanctions, European and Asian banks faced the prospect of losing access to the U.S. financial system, prompting a rapid exodus from Iranian transactions. The resulting liquidity crunch accelerated Tehran’s willingness to negotiate, culminating in the JCPOA. For multinational firms, the lesson is clear: sanctions can instantly reshape supply chains, restrict financing, and alter market access, demanding agile response plans and diversified banking relationships.

Looking ahead, Fishman warns that the weaponization of chokepoints will expand beyond finance to technology and energy. Control over advanced semiconductor manufacturing and critical energy routes—such as the Strait of Hormuz—offers adversaries leverage that rivals traditional military might. Companies must therefore embed economic‑security assessments into their strategic planning, monitor policy shifts, and consider hedging against potential disruptions. As geopolitical rivals build parallel economic ecosystems, the era of unfettered globalization may give way to a fragmented landscape where economic resilience is as vital as operational efficiency.