BAROMETER. The Strait of Hormuz crisis has dealt the global shipping economy a major blow. After the initial shock, the maritime logistics chain is striving to adapt.
The military operation launched by the United States and Israel on 28 February is not the « little excursion » referred to by President Donald Trump. Iran’s Revolutionary Guards riposted first by ordering merchant shipping to cease using the Strait of Hormuz. They then began attacking neighbouring countries, targeting American interests and strategic infrastructure. This extension of the conflict to the wider region had a worldwide impact on numerous sectors, since it let to a hike in energy prices and shortages of certain goods.
Shipping not totally paralysed
Even though the Strait of Hormuz has long been known in maritime history as a flashpoint, its virtual closure has caused deep economic instability. Energy markets are most affected, as was the case in the 1984-1988 “tanker war” during the Iran-Iraq conflict. During that period, more than 400 tankers came under attack in one form or another.
In the current conflict, matters are less clear. The energy facilities of the countries surrounding the Persian Gulf are being targeted but the warring parties showed during the first month of conflict that they wanted to preserve production capacity, even if it was in reduced mode. Although oil prices soared, it is...
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