Dubai — Global trade faces severe disruption as shipping through the Strait of Hormuz, one of the world’s most vital energy corridors, has collapsed.
Data from the United Nations Conference on Trade and Development (UNCTAD) show vessel traffic through the strait has plunged from around 130 ships per day to single digits in early March — a decline exceeding 95 percent. The collapse has sent shockwaves through global markets, given the strait’s pivotal role in transporting a significant share of the world’s oil.
Costs Surge as Routes Shift
The situation has been worsened by reports that Iran is imposing transit fees of up to $2 million per voyage. Shipping companies are increasingly rerouting vessels to avoid the strait, resulting in longer journeys, higher fuel consumption, and rising freight costs.
Broader Economic Fallout
The disruption is affecting global supply chains:
- Oil supply constraints are driving up global prices
- Freight and shipping costs are rising sharply
- Delivery timelines for goods are being extended
- Humanitarian aid shipments are experiencing delays
Analysts warn that these pressures could exacerbate global inflation, particularly in countries reliant on imported energy and goods.
An Uncertain Outlook
As tensions remain high, the Strait of Hormuz continues to be a strategic chokepoint for international commerce. Prolonged disruption could have far-reaching implications for energy security, trade flows, and economic stability worldwide.
Observers note that the crisis is emerging as a major test of global supply chain resilience, with no immediate resolution in sight.