Post by : Jyoti Gupta

Photo:AP

The recent 12-day conflict between Iran and Israel may have ended in a ceasefire, but its impact is still rocking the global shipping industry.

Tensions in the Persian Gulf have led shipping companies to delay or reroute their vessels, fearing potential threats from Iran—even though no direct attacks have occurred so far.

Iran has not blocked the Strait of Hormuz, a narrow waterway that handles a major share of the world’s oil and trade shipments. But even the possibility of action has caused serious concern among shipowners and insurers.

According to shipping analysts, several tankers changed course on June 20. Six tankers began circling off the coast of Oman, waiting for updates, while one gas tanker turned around completely before reaching Qatar.

Big names in shipping—like Maersk, CMA CGM, Hapag-Lloyd, and Mitsui OSK—warned customers that their routes through the Gulf could change at any moment. Greece’s shipping ministry even advised shipowners to rethink trips through the area until things settle down.

Major tanker operator Frontline paused contracts for ships entering the region and ordered existing vessels to leave with naval escorts. Insurance premiums and freight costs have already started rising.

Even Dubai-based port giant DP World, which runs the Jebel Ali port, confirmed it's taking steps to avoid disruption. “We’re working closely with authorities and have backup plans ready to protect cargo movement,” a company spokesperson said.

Experts say Iran may be using threats and GPS signal spoofing—without firing a single shot—to cause panic and influence the global market. And it’s working. Shipowners are nervous, and even small risks are leading to costly decisions.

If the Strait were ever actually closed, traffic could be rerouted to ports in western India, but that would create port congestion and push up oil prices and shipping fees.

This crisis also connects with the ongoing threat in the Red Sea, where Yemen's Houthi rebels had previously disrupted trade routes. One shipping expert noted the timing: just days before the Iran-Israel clashes, a major container ship finally used the Suez Canal again after months of avoiding it due to the Houthi threat.