"Hormuz" Chokes Trade.. Oil Above $100

The Strait of Hormuz crisis is no longer confined to oil tanker traffic; it has begun to strike one of the most sensitive junctures of the global economy: container and non-oil goods trade. Ship movements have collapsed, shipping and insurance costs have surged, and companies are forced to seek longer, more expensive alternative routes. According to a report published by the Financial Times, container ship traffic through the region fell by 94%, a clear indicator that the crisis’s repercussions are widening from the energy market to global trade and supply chains. Exports of some vital commodities have also plummeted, while major Gulf ports face mounting operational and logistical challenges. Shipping data reveal a fundamental shift in the navigation map: whereas dozens of regular services once linked Gulf ports to the global trade network before the war, the number of active services has shrunk dramatically, turning the region into a high-risk, high-cost shipping market. These developments coincide with ongoing disruptions to ship movements through Hormuz. Over the weekend, only 17 cargo vessels transited the strait, compared with 37 the previous week, while the pre-war average was around 125 ships per day. The Bab el-Mandeb strait also saw a decline in ship traffic, meaning that the region’s two main trade and energy corridors are under simultaneous pressure.