Iranian naval personnel on an armed speedboat in the Persian Gulf, close to the Strait of Hormuz, approximately 1320km (820 miles) south of Tehran, captured on April 30, 2019.
Morteza Nikoubazl | Nurphoto | Getty Images
The intensifying conflict in the Middle East has heightened concerns about extended interruptions to international commerce, particularly through crucial maritime routes such as the Strait of Hormuz and the Bab el-Mandeb Strait.
Major container shipping firms have ceased transit through the critically important Strait of Hormuz and diverted ships around Africa’s southern coast, coming after weekend attacks by the U.S. and Israel on Iran.
Danish shipping firm Maersk announced in a press release its decision to halt all vessel transits in the Strait of Hormuz indefinitely, cautioning that services bound for Persian Gulf ports could face delays.
Situated in the gulf between Oman and Iran, the Strait of Hormuz is known as a premier global oil transit bottleneck. Data from the U.S. Energy Information Administration indicates that in 2023, an average of 20.9 million barrels of oil traversed this waterway daily, making up roughly 20% of worldwide liquid petroleum consumption.
Maersk, often seen as an indicator of global trade trends, stated that the Middle East situation had also led it to halt all future Suez Canal transits via the Bab el-Mandeb Strait indefinitely.
This strait is a confined naval bottleneck situated between the Horn of Africa and the Middle East, connecting the Red Sea with the Gulf of Aden and the Indian Ocean. During the initial half of 2023, the Bab el-Mandeb Strait was estimated to handle 12% of maritime oil shipments and 8% of liquefied natural gas (LNG) commerce.
Maersk confirmed that all voyages on its Middle East-India to Mediterranean and Middle East-India to U.S. East Coast routes would be diverted around the Cape of Good Hope.
Peter Sand, Xeneta’s chief analyst, suggested that increased container shipping costs should be anticipated for the Middle East region as long as the conflict continues, emphasizing that there is “no viable substitute” for sea transport.
“Geopolitical risks have become more apparent, occurring with greater frequency and intensity in recent years than ever before,” Sand commented to CNBC’s “Squawk Box Europe” on Monday.
“It’s also fair to acknowledge a certain level of weariness within the industry, as one might devise numerous contingency plans only to discard them due to evolving circumstances and new developments.”
Cranes overseeing container vessels laden with cargo at the Port of Los Angeles on February 20, 2026, in Los Angeles, California.
Mario Tama | Getty Images
Even a temporary blockade of oil tankers from the Strait of Hormuz could lead to an escalation in global energy prices, increased shipping expenses, and significant delays in supply chains.
The Strait of Hormuz is also crucial for international container trade. Regional ports like Jebel Ali and Khor Fakkan serve as vital transshipment hubs, acting as intermediate points in worldwide logistical networks.
In addition to Maersk, German container shipping company Hapag-Lloyd announced over the weekend the suspension of all its vessels transiting the Strait of Hormuz, citing concerns for crew safety and security.
France’s CMA CGM reported on Saturday that it had instructed all its vessels currently in the Gulf or heading to the region to seek refuge. Furthermore, passage through the Suez Canal has been halted indefinitely, with CMA CGM redirecting vessels around Africa via the Cape of Good Hope.
MSC, the world’s largest container shipping firm, stated on Monday that it had directed all vessels operating in the Gulf area to proceed to designated safe zones, and would continue to closely monitor ongoing developments.
‘Exercising extreme caution’
Amrita Sen, who founded and directs market intelligence at Energy Aspects, remarked on Monday that the central concern revolves around the fate of the Strait of Hormuz.
She estimated that the previous year saw roughly 15 million barrels of oil and around 80 million tons of LNG pass through this maritime channel.
“The U.S. and Israel would swiftly neutralize such an attempt. The U.S. possesses significantly greater military capabilities to counter any Iranian efforts in that regard,” Sen commented.
“Although we aren’t predicting a complete closure of the strait, what the U.S. cannot manage are these isolated attacks on tankers, and that alone is sufficient to cause the market to be exceedingly wary of dispatching vessels into the area. This is precisely what leads to the interruptions,” she further explained.