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Economic concept
Chokepoint
A narrow route carrying flows that are difficult to reroute.
All conceptsWhy does the Strait of Hormuz matter so much to the world economy?
Hormuz concentrates a large share of globally traded oil and LNG in a route with limited bypass capacity. A disruption changes expected availability, freight and insurance costs, so global prices can move even for countries buying elsewhere.
See it at workHow can a ship stuck far away raise prices here?
A blocked chokepoint delays many ships, not just one. Rerouting consumes time, fuel, vessels and containers. Freight and insurance costs rise, inventories arrive later, and firms facing scarce inputs may cut output or pass part of the cost into prices.
See it at workWhy can export controls reach products made abroad?
Some export-control rules follow specified technology or software into products manufactured abroad. If a foreign product is the direct product of controlled technology, or comes from certain plants using it, jurisdiction can attach under defined conditions.