As the Iran-Israel conflict continues to escalate, global trade can soon see the Iran war disrupting shipping. Iran and Israel have been in a back-and-forth for decades, which has escalated in recent years. More recently, Israel and the US started what President Trump called “major combat operations”, bombing various locations in Iran. Trump noted that the strikes were to “prevent this very wicked, radical dictatorship from threatening America.” With the escalation continuing, numerous supply chains that rely on commodities from the location, such as oil, will be affected. With warnings of future strikes and broader conflict, the war could soon have a greater impact on international shipping. How Is The Iran War Disrupting Shipping? The Iran war is disrupting shipping in numerous ways, including halting trading routes and creating supply chain bottlenecks. A primary issue is that the conflict is happening near the Strait of Hormuz . This strait is responsible for nea...
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