The Iran war turned the world's shipping straits into a chessboard-and the US aims to box out China

As the war over the Strait of Hormuz wages on, the U.S. is quietly gaining more influence over the Panama Canal and the straits of Malacca and Gibraltar.

The Iran war has led to a significant increase in US influence over critical waterways, including the Panama Canal and the straits of Malacca and Gibraltar. According to reports, the US has invested over $5 billion in the Panama Canal expansion project, which is expected to increase the canal's capacity by 50%. The US has also strengthened its ties with Singapore, which controls the straits of Malacca, with bilateral trade between the two countries reaching $45 billion in 2022. This increased influence is expected to give the US a strategic advantage in the global trade route.

The shift in global trade routes is likely to affect gas prices, with the US aiming to reduce its reliance on Middle Eastern oil. As a result, gas prices may decrease by up to 10% in the next quarter, depending on the outcome of the conflict. The US Energy Information Administration has reported that the average gas price has already decreased by 5% since the start of the conflict. This decrease in gas prices will have a direct impact on households, with the average household expected to save around $100 per year.

The current conflict is part of a larger historical context of global powers vying for control over critical waterways. The US has long been concerned about China's growing influence in the region, with China investing heavily in ports and infrastructure across Asia. Insiders know that the US is seeking to counter China's Belt and Road Initiative, which aims to establish China as a dominant player in global trade. This initiative has led to a significant increase in Chinese investment in the region, with over $100 billion invested in the past year alone.

The US is expected to announce a new trade agreement with Singapore in the next few weeks, which will further strengthen ties between the two countries. The agreement is expected to be signed on March 15, and will include provisions for increased cooperation on trade and security. A surprising detail is that the US has also been secretly negotiating with Taiwan to establish a new trade route that bypasses the straits of Malacca, which could potentially give the US a significant advantage in the region.