The war in Iran is choking off a key shipping route in the global supply chain, potentially leading to massive delays in the flow of goods to American consumers.
The Strait of Hormuz, a narrow waterway that sits along the southern coast of Iran, gives passage to one-fifth of the world’s oil supply and is also a key route for other types of commodities like aluminum, sugar and fertilizer.
According to Iranian state media, a senior commander for Iran’s Revolutionary Guard said the strait is closed and that it would set any ship trying to pass through on fire. Iran technically cannot close the Strait of Hormuz, but the mere threat of retaliation has been enough to prevent ships from sailing through the waterway.
Many major shipping and logistics companies have restricted or halted bookings through the region since the strikes on Iran began, including Maersk, MSC Group, CMA CGM, Hapag-Lloyd, COSCO and Emirates SkyCargo.