As fighting between Israel and Iran is boiling over, the most strategic oil chokepoint in the world – the Strait of Hormuz – is in the spotlight. Concerns have been raised about just how disruptive the war could be for the steady flow of Gulf oil shipments to Europe,

As the conflict escalates, container shipping faces growing risks from a potential chokepoint closure, rising insurance costs and surcharges from major carriers.

The risk of Iran closing the Strait of Hormuz is real and could disrupt 20% of global oil supply. Click here for more information on Market Outlook.

There are reports that a few shipping lines may be reassessing routes, particularly the choke point of the Strait of Hormuz, given the heightened threat in the region. This could further add to the transportation cost to and from the region.