Strait of Hormuz

Operational Crisis Simulation
What This Is

This is a multi-agent crisis simulation of a naval confrontation in the Strait of Hormuz. Two AI commanders — an IRGC Navy admiral and a Coalition CENTCOM admiral — play 40 turns of asymmetric naval coercion while real economic models track the global consequences of every decision they make.

It is not a board game skinned with AI. The agents receive briefings, issue structured orders, validate legality, negotiate via diplomatic signals, and manage escalation — while an independent merchant fleet of NPC cargo ships makes its own risk-based routing decisions based on perceived threat, insurance costs, and fleet confidence.

The simulation produces seven distinct outcome types, from restored passage to full regional war, graded by a deterministic evaluation system that accounts for transit throughput, toll revenue, escalation trajectory, diplomatic momentum, and merchant confidence.

The Strait by the Numbers
21M bbl/day
Oil transiting the Strait daily — 20% of global supply
25%
Of the world's LNG passes through this 21-mile chokepoint
55 ships/day
Normal transit traffic — tankers, LNG carriers, container ships
$147.50
All-time oil record (2008). Our simulations regularly exceed it.
How the Simulation Works

Each game runs 40 turns representing 20 simulated days, alternating day and night phases. Night turns degrade Coalition air superiority and give Iranian submarines a stealth bonus. The game starts at escalation 4/20 with Iranian forces controlling the northern approaches and Coalition forces staging from Fujairah and the carrier operating area.

Both commanders receive a filtered intelligence briefing each turn — not the true board state. Iranian submarines are nearly invisible. Fast attack craft blend into coastal clutter. Coalition destroyers, being large surface combatants, are always visible. This assessment fog means both sides are making decisions on incomplete information, and mistakes are plausible.

The Commanders
Admiral Hamid Nouri
IRGC Navy. Asymmetric doctrine — swarms, mines, drones, submarines, merchant coercion. Wins by imposing cost, collecting tolls, and outlasting. Doesn't need to win a fleet battle. Needs to make Coalition presence unsustainable.
Admiral James Calloway
CENTCOM Coalition. Conventional superiority — destroyers, precision missiles, air cover. Wins by keeping the strait open and merchant confidence high. Must balance escalation management with operational effectiveness.
Every turn, each commander produces structured reasoning: a primary objective, a supporting objective, and one thing they're trying to avoid. These are visible to spectators in the turn summary — you see why they're making each decision, not just what they do.
Order of Battle
UnitSideRoleKey Trait
Fast Attack CraftIRGCSwarm attacks, boarding3+ in one zone: +1 attack
SubmarineIRGCHidden threat+1 attack at night, 85% concealment
Mine LayerIRGCArea denialInvisible mines, 55% hit chance
FPV Drone SwarmIRGCAnti-air, harassmentOnly unit that can target fighter jets
EW JammerIRGCElectronic warfareDegrades Coalition guided weapons in zone + adjacent
Coastal Missile BatteryIRGCShore defenseImmobile, high attack value
DestroyerCoalitionEscort, patrol, combatWorkhorse — every mission uses one
Fighter JetCoalitionAir superiority-1 to all Iran attacks (suspended at night)
Cruise MissileCoalitionPrecision strikeOne-use, range 3 zones, targets units or infrastructure
MinesweeperCoalitionMine clearanceEssential for reopening mined zones
The Merchant Fleet

Neither side controls the merchants. They are independent NPC actors — 5 ship classes (VLCC crude tankers, LNG carriers, container ships, product tankers, bulk carriers) from 11 flag states, each making expected-value calculations about how to transit the strait.

Every merchant evaluates four options: free transit (risky, no toll), pay the Iranian toll ($4M, safer), request Coalition escort (slow, binds a destroyer), or anchor and wait. Their decisions are driven by perceived threat — which is modulated by fleet confidence, a persistent score that drops with every boarding, seizure, and sinking.

A boarded ship creates fear across the entire fleet. A seized ship forces every captain to recalculate. Iran's real weapon isn't the military — it's merchant confidence. When confidence drops below 40, LNG carriers refuse to transit without escort. Below 20, the strait is functionally blockaded even if no ships are sunk.
Economic Model

The simulation tracks real market instruments that respond to crisis events. Oil prices spike with supply disruption and escalation. The Nikkei drops hardest (Japan imports 87% of its oil through the Gulf). Gold and Bitcoin surge as fear gauges. Saudi Tadawul rises as alternative suppliers benefit. Insurance tiers escalate from NORMAL through ELEVATED, HIGH, WAR ZONE, to SUSPENDED.

Games can start from historical market baselines (actual prices on a specific date) or today's prices, then diverge as the simulation's events take over. The after-action report compares simulated outcomes to real-world benchmarks — the 2008 oil record, the 2022 Ukraine invasion spike, the 2019 Aramco drone attack.

Oil
Brent crude. Supply disruption premium + fear premium + infrastructure damage. Simulations regularly exceed $140/bbl.
Insurance
Lloyd's hull premium. Scales with incidents — from 0.5% baseline to SUSPENDED. Based on 2019 Hormuz war-risk spike data.
Markets
S&P 500, Nikkei 225, Shanghai SSE, Saudi Tadawul, Gold, Bitcoin. Each with different sensitivity to Gulf disruption.
Toll Revenue
Iran's toll channel. $4M per ship. $500M target validates sovereignty. Every toll payment is a political victory.
Seven Outcomes

Games don't end in binary "win/loss." The outcome grading system evaluates the strategic texture of how the crisis resolved:

Restored Passage
Coalition reopened the strait, confidence recovered, Iran's toll failed. Best-case Coalition outcome.
Contested Passage
Strait is "open" but dangerous. Coalition won on paper but paid for it — ships still getting through with military escort.
Militarized Passage
Coalition maintained passage through overwhelming force. Effective but politically expensive and unsustainable.
Coerced Passage
Ships are transiting — but through Iran's toll channel, on Iran's terms. Sovereignty assertion succeeded.
Blocked Strait
Transit collapsed. Iran controls the chokepoint. Global energy crisis underway.
Frozen Crisis
Neither side achieved objectives. The crisis didn't resolve — it just stopped moving. The most realistic outcome.
Regional Conflagration
Escalation crossed 20. Full regional war. Nobody wins this one.
What Makes This Different

The economics are the real simulation. Most wargames model combat. This one models insurance markets, merchant confidence, oil futures, and diplomatic momentum. The military is the mechanism — the economics are the battleground.

Time is Iran's weapon. 20-turn games favor the Coalition. At 40 turns, Iran's coercion tools compound — toll revenue accumulates, confidence decays, insurance spikes, Japan burns reserves. The simulation captures what most wargames miss: that crises are won by the side that can sustain pressure longest.

The agents show their reasoning. Every turn, you see what each commander is trying to accomplish, what they're supporting, and what mistake they're trying to avoid. The decisions are the content — not just the outcomes.