Global Shipping On High Alert Amid US Iran Airstrikes, Strait Closures Threat

Following U.S. airstrikes on Iran’s nuclear facilities, the global shipping industry is on high alert due to escalating threats around the Arabian Peninsula, particularly in the Strait of Hormuz, the Red Sea, and the Gulf of Aden. Shipping organizations like BIMCO have observed a decline in vessels transiting the Strait of Hormuz amid fears of Iranian retaliation, including potential attacks using drones, missiles, or sea mines, which could disrupt this critical oil chokepoint responsible for about 20% of global petroleum consumption. Increased insurance war risk premiums and some shipowners avoiding the Persian Gulf have caused a rise in shipping rates, while disruptions by Houthi attacks in the Red Sea have forced ships to take longer, costlier routes around Africa. Greece, with substantial shipping interests and oil-tanker capacity, has issued advisories urging Greek-owned vessels to avoid the region and remain in safe ports, citing the risk of Iran closing the Strait of Hormuz and the potential for terrorist attacks, while also facing increased migration pressures from the Middle East. Despite these warnings, some shipping companies continue operations in the region but are prepared to reassess based on evolving security conditions. Overall, the situation poses significant risks to global trade, energy markets, and maritime security, prompting calls for diplomatic resolution to de-escalate tensions.