Trump risks confidence in U.S. role as guardian of global shipping

Of all the things Donald Trump has done to disrupt global commerce, from levying punitive tariffs to tearing up trade deals, few would be as consequential as withdrawing and leaving the rest of the world to secure the Persian Gulf.

The move, which the US president has repeatedly threatened as his war with Iran drags on, would represent a break with decades of US policy keeping open the sea lanes that carry four-fifths of the $35 trillion global goods trade. Even the threat of reducing security for the Strait of Hormuz risks shaking confidence in a pillar of the world economy, as well as American wealth and power.

Traffic through the strait has dropped to a handful of ships daily from about 135 before the war, with Iran allowing passage mainly for its own exports. Those conditions are putting at risk roughly one-fifth of global oil flows, driving up prices and injecting volatility into energy markets.

Since World War II, the US has used its navy to deter attacks, counter piracy and challenge attempts by states to restrict lawful passage across the oceans that cover more than 70% of the Earth’s surface. Those guarantees have allowed oil, goods and commodities to pass across borders with minimal friction.

“The free flow of commerce through the strait is a larger principle at stake in this conflict,” said retired Vice Admiral John W. Miller, former commander of US Fifth Fleet in Bahrain. “Failure to ensure freedom of navigation in Hormuz puts global freedom of navigation everywhere at risk.”

European and Asian officials, who spoke to Bloomberg on the condition of anonymity to discuss sensitive matters, said the conflict has eroded faith in the US role as protector of the high seas, raising concerns about energy prices, shifting security calculations around key choke points and growing doubts about Washington’s ability to manage the consequences of the war.

And it’s more than just Hormuz. The Trump administration’s campaign to blow up speed boats suspected of ferrying drugs across the Caribbean and doubts about whether the Navy made sufficient efforts to save crew members of an Iranian warship it sank off the coast of Sri Lanka have raised questions about the US’s commitment to the rules that protect all sailors at sea.

A Pentagon spokesperson didn’t answer a question about whether the US was still committed to ensuring freedom of navigation, saying only that the military “continues to provide the president options” regarding the strait. The White House didn’t respond to a request for comment.

In the absence of a US plan, smaller, trade-dependent........

© Fortune