Israel-Iran conflict raises concerns about oil supply and shipping routes, but no immediate impact yet.

From Yahoo Finance: 2025-06-18 09:50:00

The ongoing Israel-Iran conflict raises concerns about the potential closure of the Strait of Hormuz, impacting global oil supply and shipping routes. Research shows adequate oil supply to mitigate immediate price surges, but any blockage will reroute shipping paths and inject volatility into markets.

Brent crude oil prices rose to $72.20, up from $66.80 before Israel’s attacks on Iran. Diesel prices saw a significant increase, impacting fuel surcharges. A closure of the Strait of Hormuz could redirect transshipment volumes, causing congestion in alternative ports and elevating freight rates.

Israel’s Zim operations proceed normally despite missile attacks. Container shipping rates on the eastbound trans-Pacific fluctuate amid geopolitical tensions. The tariff ceasefire between China and the US eases demand, leading to vessels departing with unfilled cargo space.

Two US companies sue the Trump administration over tariffs’ legality. A tentative US-China trade agreement would maintain minimum tariffs, impacting container volumes. The deal may stagger shipment volumes over peak months, affecting freight demand and causing volatility in trans-Pacific routes.

Recent peak season surcharges by ocean carriers reflect trans-Pacific volatility. CMA CGM, Maersk, and Hapag-Lloyd announce surcharges on various routes. The anticipated US-China trade deal may reduce frontloaded container volumes, impacting freight demand for the rest of 2023.

The Freightos Index shows no significant impact on shipping from the Israel-Iran conflict yet. Despite potential tariff changes, freight markets remain stable. The ongoing conflict could have long-term implications on global shipping routes and oil prices.

Read more: Israel-Iran conflict yet to hit shipping