The closure of the Strait of Hormuz due to a US-Israeli military operation against Iran has caused chaos in global shipping. Hundreds of oil tankers and cargo ships have been forced to urgently seek alternative safe routes, leading to a sharp increase in distances, transit times and transport costs. As a result, global supply chains have been disrupted and shipping companies have faced unprecedented logistical difficulties.
In this context the Panama Canal has become the main alternative route, leading to its overload. Each oil tanker or vessel now pays up to one million dollars for passage via the pre-booking system, and under the auction system this sum can rise significantly. As a result, multi-day queues have formed in front of the canal’s locks, and vessel operating costs have soared.
According to a report by Al Jazeera correspondent Anas al-Sabbar, canal management recorded an increase in shipping from 36 to 42 vessels per day in recent months. Canal officials note that the traffic increase is generating additional revenue without compromising service quality, which indicates the infrastructure’s ability to cope with crisis loads thanks to precise operational adjustments.
The canal’s engineering system allows vessels to transit in 8–10 hours, compensating for the elevation differences between the Pacific and Atlantic oceans. About 5% of the world’s maritime trade by volume passes through it annually, making it a vital artery of international trade. In the crisis, the number of LNG and other fuel tankers seeking a safe alternative route has increased noticeably.
One of the Panama Canal’s executives called it a “safe and neutral route,” noting that Japanese refineries, which previously imported feedstock from the Middle East, are now increasingly relying on US suppliers. Canal revenues have risen this year thanks to increased demand after last year’s profits of $3 billion. The situation clearly demonstrates the vulnerability of the global economy, which depends on narrow sea passages: recall that the US maritime blockade against Iran began on April 13, 2026, and since then US forces have seized dozens of Iranian vessels and rerouted hundreds of ships carrying cargo to or from Iran.
Comments on the news
- Why is the Strait of Hormuz considered strategically important for the global economy and what specific risks does it pose for oil supplies? - The Strait of Hormuz is a narrow sea passage (about 33 km at its narrowest point) through which some 20–25% of the world’s oil passes (by various estimates, over 17 million barrels per day). This makes it the planet’s “oil bottleneck.” The main risk is blockage of the strait (for example, due to conflict with Iran, which threatens to close it), which would lead to a sharp spike in oil prices, supply chain disruptions for Asian countries (China, Japan, India) and a potential global recession. Even temporary incidents, such as tanker seizures, create instability.
- What alternative routes, besides the Panama Canal, are available for ships leaving the Persian Gulf, and why are they less efficient? - Main alternatives: 1) Overland transport of oil (for example, via pipelines such as Iraq’s Kirkuk–Ceyhan or Saudi Arabia’s Petroline to the Red Sea), but they have limited capacity and are vulnerable to attacks. 2) Route around the Cape of Good Hope (around southern Africa) — it adds about 10–12 days (up to 3,000 nautical miles) for tankers traveling from the Persian Gulf to Europe or the US, increasing freight costs and delivery time. 3) The Northern Sea Route (via the Arctic) — seasonal, requires icebreakers and is unavailable for most of the year. All these routes are less efficient compared to the Strait of Hormuz because they increase logistics costs, time and risks (piracy, weather).
- What impact does the blockade of the Strait of Hormuz have on Iran’s economy and its trading partners? - For Iran, a blockade is a double-edged sword. On one hand, Iran can use the strait as leverage, threatening to close it in response to sanctions or aggression. On the other hand, it would inflict serious damage on its own economy: the majority of Iran’s oil exports (up to 2–2.5 million barrels per day) pass through the strait and are a primary source of budget revenue. A blockade would cut Iran off from international markets, worsen inflation and foreign currency shortages. For Iran’s trading partners (China, Turkey, India), it would cause a shortage of Iranian oil at preferential prices and put pressure on their economies, as well as increase energy prices. However, if the blockade is unilateral (for example, in response to US sanctions), Iran risks further isolating itself and losing key buyers.
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