Shipping, Travel Suffer as US-Iran War Continues in Gulf

The United States and Israel's war against Iran isn't just impacting Gulf states physically– both the shipping and travel industries are suffering as strikes continue.

The problems come just days after the US and Israel launched a barrage of strikes at Iran, killing their leader, Ayatollah Ali Khamenei– a brutal dictator who oppressed and tortured the Iranian people for decades. However, the move has been criticized by the UN and other nations, labeling the attack as a flagrant violation of international law. Now, a war has begun in the Gulf, with Iran launching strikes at US bases in Gulf states like Bahrain, Qatar, Kuwait, and the UAE.

However, this conflict doesn't simply have physical implications– it is also impacting global trade and travel.

The Strait of Hormuz, located between Iran, Oman, and the United Arab Emirates, is a crucial shipping lane affected by the war. Over 20% of global oil and liquefied natural gas (LNG) travels through the strait due to the Middle East's extensive oil and gas reserves, sparking concerns that oil prices could experience a major spike in the next few days.

Multinational shipping carriers like Maersk, Hapag-Lloyd, and MSC have all shut down routes through the region, leaving major hubs like Dubai's Jebel Ali Port completely empty.

Maersk confirmed that they would also shut down service through Egypt's Suez Canal and the Bab el-Mandeb Strait, located where the Red Sea meets the Arabian Sea between Yemen, Djibouti, and Eritrea. This means that all shipping to south and eastern Asia will now be sent around the Cape of Good Hope, significantly increasing travel times as they sail around South Africa.

Furthermore, the conflict also has major implications for global travel and the aviation industry. Thousands of flights have been canceled due to the closure of several crucial airports, including Dubai International Airport – the world's second-busiest – and Doha Hamad International Airport.

Emirates, Qatar, and Etihad, the three Middle Eastern carriers known for their incredible service and diversity of international routes, have all temporarily shut down operations, but they are beginning to get some high-priority flights in the air to try to allow stranded tourists or visitors to return home.

Flight times on other airlines have also been affected, with the rerouting process adding as much as several hours to many routes as they avoid the conflict in the Middle East. These scheduling issues echo across other regions as pilots and flight attendants are delayed in their arrival by hours or even days, wreaking havoc on airline scheduling.

Cargo planes have also been affected by the delays and cancelations, putting further stress on the shipping industry to supply goods across the globe. Trump suggested yesterday that the war could continue for up to four weeks, meaning that the global shipping, travel, and oil industries could be in for a beating until the conflict comes to an end.

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Image credit to Hapag-Lloyd