The Strait of Hormuz, a vital chokepoint for 20% of global oil and 30% of fertiliser, has become the epicenter of economic warfare in the Iran conflict. Missile attacks, mine threats, and naval deployments have pushed war-risk insurance premiums from 0.05% to over 1%. For a $120 million tanker, one voyage now costs between $600,000 and $1.2 million in insurance alone.
Major carriers including Maersk, MSC, and Hapag-Lloyd have halted or rerouted voyages, lengthening supply chains. Experts stress that diversifying suppliers and strengthening supply chain resilience is no longer optional but a strategic necessity.
The U.S. has pledged naval escorts, urging allies like China, Japan, and France to join. Yet, Iran continues to threaten vessels, warning of attacks. A sustained disruption could trigger long-term global economic instability.
Trade experts warn that deeper, broader trade agreements are key to building economic security in an era of rising protectionism.