Trade flows across the Middle East are under growing pressure as tensions around the Strait of Hormuz disrupt one of the world’s most critical shipping routes. A new analysis by PwC highlights how the situation is exposing structural weaknesses in regional and global supply chains.
The Strait of Hormuz handles a significant share of global energy and industrial shipments, including jet fuel, liquefied natural gas, and key raw materials such as ammonia, sulfur, and aluminium. Any disruption in this corridor has immediate ripple effects across international markets.
Experts note that while container shipments can often be rerouted, albeit at higher cost and longer transit times, energy supplies such as LNG are far less flexible due to specialised infrastructure requirements. This creates a dual impact of supply shortages followed by rising costs as buyers compete for alternative sources.
The current disruption, driven by regional escalation and airspace closures, is considered more complex than previous supply chain shocks. Analysts warn it could reshape trade patterns if instability persists, adding pressure to global markets already facing inflation and logistical challenges.
