Attack on Iran brings uncertainty for shipping via Strait of Hormuz

The air raids in Iran and the broader region bring a serious risk to the world economy, as they endanger shipping via the Persian Gulf and the narrow Strait of Hormuz. There’s even a risk Iran would make shipping impossible.

This route is of crucial importance for a lot of the world trade, in oil and other goods. If passage is impossible, a much longer route is the only option.

The US government is urging commercial vessels to "stay clear of the Persian Gulf" due to "significant military activity" in the region. The department issued this statement on Saturday following attacks by the United States and Israel on Iran.

Insurers told ship owners on Saturday they would cancel policies and raise coverage prices for vessels travelling through the Gulf and Strait of Hormuz , writes the Financial Times.

On average, there are fifteen to twenty ships sailing under the Belgian flag in the Persian Gulf. For security reasons, Belgian ship owners refuse to say how many ships they have in the region at present.

_{| ​ Cargo ships and tankers in the Strait of Hormuz © Giuseppe CACACE / AFP}