Maritime attacks choke trade and oil flows
Attacks and blockades have spread from the Red Sea to the Strait of Hormuz, forcing major Gulf producers like Iraq, Kuwait and Qatar to curtail exports and pushing carriers to reroute — a direct stress test on global energy and shipping reported. Indian exporters say they're already diverting ships around Africa and absorbing higher logistics and insurance costs reported, while President Trump has publicly urged allies to send warships but most governments have responded with caution urged — underscoring a prolonged period of supply‑chain volatility said.
The International Energy Agency reported) that crude and product flows through the Strait of Hormuz fell from roughly 20 million barrels per day before the war to “a trickle,” and that Gulf producers have cut combined output by at least 10 mb/d to cope with halted shipments. The U.S. Energy Information Administration noted) that roughly 20 million b/d — about 20% of global petroleum liquids — normally transited the strait pre‑crisis. Iraq suspended operations at its southern oil export terminals after attacks on two tankers, a move Bloomberg said) removed several million barrels per day from seaborne exports and forced field-level shutdowns. Kuwait declared force majeure and trimmed production amid shipping threats, Bloomberg reported), while Qatar halted LNG output at key facilities following drone strikes, according to CNBC coverage). Major carriers have rerouted Asia–Europe services around the Cape of Good Hope, with Maersk announcing) paused trans‑Suez sailings and Ocean Alliance keeping Cape routings in place from April; industry analysis shows rerouting adds roughly 10–18 extra days and shrinks available weekly capacity by about 10–15%. Cape Town ports logged a 112% surge in diverted vessels as global lines divert traffic, local reporting recorded). War‑risk cover has been redefined and repriced: Lloyd’s market advisories and underwriters widened the Gulf high‑risk zone, prompting war‑risk premiums to spike — in some instances rising fivefold within days, Reuters‑linked reporting and market outlets documented). Carriers are passing costs on with emergency freight increases and war‑risk surcharges — Hapag‑Lloyd imposed) and Maersk issued) contingency fees effective in March. Indian exporters and logistics firms report rerouting shipments around Africa and absorbing steep cost hits, with The Times of India reporting) higher freight, insurance and transit times; market trackers estimate logistics costs on affected lanes have jumped in the mid‑teens percent and, for some shipments, much higher. Shipping analysts also warn that longer voyages are increasing fuel burn and the number of vessels needed to maintain schedules, lifting spot freight and inventory carrying costs observed). President Trump publicly urged allies to send warships to reopen the Strait of Hormuz, a call covered by the New York Times and Bloomberg noting), but most governments have declined broad commitments or offered limited escorts; France has announced additional deployments and escort plans while many NATO and Asian states have stayed cautious, as reporting on national responses shows).
