MARITIME INSIGHT: MIDDLE EAST CONFLICT IMPERILS ANOTHER MARITIME TRADE CHOKEPOINT

   Mon, 22 April 2024

As direct military operations escalate between Iran and Israel through land, air, and sea engagements, there is growing potential for a broader Middle Eastern conflict and disruption of global oil shipments, mainly through the strategic Strait of Hormuz. The recent capture by Iran of a vessel linked to Israel in the Strait of Hormuz, coinciding with direct military actions against Israel, signals an unprecedented increase in maritime risks in the region. Despite this escalation, the muted reaction in oil prices is unexpected, indicating that increased risk premiums may already be incorporated into the market. Nevertheless, substantial risks continue to loom over the market, suggesting ongoing volatility and uncertainty in global oil supply chains.