How global shipping could be impacted by US-Israel war with Iran
Oil tankers operating in the Strait of Hormuz
The US-Israeli military operation against Iran and Tehran’s retaliation are disrupting global maritime traffic, including oil tanker transports.
The grounding of ships around the Gulf and the paralysis of the Strait of Hormuz, a critical narrow waterway bordered by Iran and Oman, represent a significant upheaval for a wide range of sectors beyond hydrocarbons.
Here is how shipping could be impacted:
About 33 percent of the world’s fertilizers, including sulfur and ammonia, transit through the Strait of Hormuz, according to the trade analysis firm Kpler.
Loaded onto cargo ships in Qatar, Saudi Arabia or the United Arab Emirates, these fertilizers have diverse destinations ranging from India and China to Brazil and African countries.
The conflict in the Middle East also threatens a major polymer export hub in the United Arab Emirates, according to an analysis published Monday by the consulting firm Argus Media.
The firm said the region produces up to 23 million tons of polyethylene – one of the most widely used plastics in the world – annually, representing 15 percent of global production.
The shipping conditions also disrupt the arrival of cargo to the Middle East, a region that relies in part on food imports.
Many transports pass through the Strait of Hormuz.
During a June 2015 US military operation in Iran, for example, entire shipments of rice destined for the region were blocked in India.
