Iran’s closure of the Strait of Hormuz is the latest example of how countries are increasingly weaponizing supply chains.

The WSJ’s Jason Douglas reports that China previously jolted the world with its willingness to use its extensive control of the rare-earth supply chain to extract concessions from the U.S. and punish countries such as Japan. And China has been squeezed by American export controls on semiconductor technology.

The question now becomes what governments will do about their economic pinch points.

Reducing the world’s reliance on the energy that transits the Strait of Hormuz, which could be closed again by Iran, will require big investments in new pipelines and export routes. Importers will need to rebuild depleted crude-oil reserves and build stockpiles to prepare for another shock. They may need to consider hefty layouts on renewables and nuclear power to ensure steadier energy supplies ahead of any new disruption.

Building that resilience will cost money and take years. The impetus to see it through might fade once the crisis has passed. The challenge highlights the difficulty governments face in overcoming economic vulnerabilities that emerge in a deeply intertwined world.

• The World Trade Organization said global flows of goods across borders are showing resilience despite the uncertainty caused by the war in Iran. (WSJ)
• OPEC and its allies agreed to raise oil output again in a move widely seen as symbolic. (WSJ)
• TotalEnergies has capped prices at its 3,300 gas stations across France and pledged to continue doing so as long as Ian war endures. (WSJ)
• World food prices were broadly stable in May, but the Middle East conflict threatens a broader shock to the global food system. (WSJ)

Apparel retailers say return rates have gotten a shot in the arm from the soaring popularity of weight-loss drugs. The WSJ’s Jennifer Williams writes that shoppers losing weight on GLP-1 drugs such as Ozempic are buying several sizes and returning what doesn’t fit, a move known in the returns industry as bracketing. The share of apparel exchanges where shoppers sized down has increased each of the past three years to 14.6% in 2025, according to reverse-logistics service provider Narvar.

Returns weigh heavily on retailers’ margins, especially for online orders. Shipping, labor and warehousing costs add up, and items might be out of season by the time they’re returned, preventing retailers from reselling them at full price. The founder of one online women’s brand said she’s ordering smaller sizes to accommodate customers and is getting more descriptive about sizing, noting if items run oversized.

Your meal-delivery order is now arriving—via Walmart. The WSJ’s Sarah Nassauer reports that the retail giant plans to offer customers the option to order 30-minute delivery from Subway restaurant locations inside its stores by this summer. The move is the next step of Walmart’s plan to use its driver network to compete with food-delivery companies such as Uber Technologies and DoorDash.

The effort represents a new battlefront for Walmart as it looks to expand its delivery capabilities. Beyond Subway, the company is also looking at delivering meals from other restaurants near stores. But restaurant delivery is a highly competitive business dominated by widely available services like Uber Eats and DoorDash. Demand skyrocketed for the services during the pandemic, but the industry more recently has gone through a period of consolidation as it navigates the thin margins involved with last-mile home delivery.

The U.S. added 172,000 jobs in May. (WSJ)

The eurozone’s economy contracted in the first quarter. (WSJ)

German manufacturing orders dropped in April, with weak demand set to persist amid the high uncertainty prompted by the war in Iran. (WSJ)

Retail sales of passenger cars in China fell 22.1% in May from a year ago to 1.51 million units, the China Passenger Car Association said Monday. (WSJ)

Kevin Knight, the longtime chairman and CEO of Knight-Swift Transportation Holdings, retired from the company. (DC Velocity)

Canadian warehouse workers signed the first-ever collective agreement with Walmart. (The Guardian)

Amazon unveiled a warehouse robot that can take commands in conversational language. (CNBC)

Thieves stole nearly 11,000 bottles of bourbon from a North Philadelphia warehouse. (Philadelphia Inquirer)

Ocean carriers are seizing on an early peak season to raise container spot rates. (Journal of Commerce)

A containership trading between Singapore and Malaysia sank off the Indonesian island of Batam after reportedly taking on water. (Splash247)

The PortMiami director departed as the Florida county fights to prevent the site of the port’s fuel depot from being redeveloped as luxury condos. (Miami Herald)

Container shipping analyst Lars Jensen is planning a 40,000-mile road trip to research ways to better connect African economies with the global trading system. (Bloomberg)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.