The US-Iran conflict is threatening key shipping routes in the Middle East, including the important Strait of Hormuz. Since the strikes on Iranian locations by the US and Israeli military at the end of February, tension has escalated in the region, with retaliatory strikes against Israel and US interests in a range of other countries including the United Arab Emirates, Qatar, and Bahrain. At Emerald Freight we have the expertise and logistics partners around the globe that help us react and put in place emergency contingencies when geopolitical events impact the world’s shipping routes.

The importance of the Strait of Hormuz

In 2025, nearly 15 mb/d of crude oil, nearly 34% of global crude oil trade, passed through the Strait of Hormuz. Within hours of the initial strike on Iran on 28th February 2026, Iran’s Islamic Revolutionary Guard Corps broadcast warnings to vessels in the Strait of Hormuz that passage was ‘not allowed’. Vessel traffic through the strait had fallen by around 70% within a few days.

How does the conflict impact Irish businesses?

Costs for routes through the Middle East have doubled since the start of the conflict. This has had an impact on Irish businesses, specifically in the exports of pharmaceutical products and medical devices. These rely on air freight, but with attacks in the wider region due to the closure of the Strait of Hormuz, it is believed that 20% of this type of Irish export has been impacted due to the disruption. Imports such as generic medicines and vaccines travelling from India to Ireland have also been affected, as air space has been closed over the direct route.

Which industries are affected by the conflict?

Numerous industries are affected by the shutdown of the Strait of Hormuz. The healthcare sector faces critical supply issues for generic pharmaceutical ingredients, medicines, and vaccines travelling from Asia. The delivery of microchips and consumer tech for EV batteries and semiconductors is impacted, while the agriculture sector is disrupted through fertiliser exports ahead of spring planting in the Northern Hemisphere. The energy sector and construction are also industries affected, which could impact everyone in the coming months if there is no end in sight.

A global problem for sea and air freight

Closures of major container ports and airports in the Gulf nations could lead to lengthier lead times, so having contingency plans in place is a necessity. This is especially the case for sea-air shipments. Dubai, as one prime example, is a critical transport hub for moving cargo between Asia and Europe. Cargo may begin its journey by sea and then transfer to air cargo onto Europe. Sea-air transport is favoured by many companies looking for speedy transit at lower costs when compared with full air freight.

Contingency plans from freight forwarders

One of the ways in which freight forwarders are responding to the crisis with the Strait of Hormuz is by chartering flights to offset lost capacity. This means landing planes outside airports that are directly affected and forwarding on the transit via road freight. Backlogs to orders began immediately, and with that came rising costs for air freight due to higher fuel costs. Detours for air freight routes are required, but this can be costly. When you consider the length of time that Russian airspace has been closed due to the on-going conflict in Ukraine, and that’s a large area of the world that is impacted by conflict. Re-routing options between Asia and Europe have two options, north via Afghanistan and the Caucasus, or south via Oman, Saudi Arabia, and Egypt. This means additional fuel and longer transit times due to the extra mileage and additional refuelling stops.

Re-routing sea freight routes

Other contingency plans include re-routing sea freight around Africa, around the Cape of Good Hope. This could add 10-14 days onto transit times for vessels that are travelling between Asia and Europe or the Americas. This does bring a wealth of issues to global trade, but it might be the only option for some cargo in the short to mid-term, while there is such instability in the Gulf states and the Strait of Hormuz remains closed to cargo.

Ensure your freight is safe in the most extreme circumstances

Sea freight is challenging at the best of times. Ensuring that your cargo is safe, secure, and en route during a crisis is daunting. Connect with a freight expert today and we’ll be happy to discuss the current logistical problems that US military presence in Iran and the wider region pose. With the Strait of Hormuz closed, there are many significant problems to overcome before we get back to routine sea freight in the region. We’ll be happy to discuss your options and put together a plan of action for the foreseeable future.