The Council of the European Union has expressed concern over developments in Iran and the Middle East, emphasising the importance of maintaining maritime security and freedom of navigation, particularly along strategic routes such as the Strait of Hormuz.
Disruptions in the Strait of Hormuz are already impacting global logistics networks: sea and air transport routes are being altered, costs are rising, and supply chains face increasing uncertainty. The longer these heightened tensions persist, the greater the potential for ripple effects across international trade and freight markets.
The European Shippers’ Council has highlighted the likely consequences for European companies, including:
-Volatility in energy prices
-Higher energy and fuel costs affecting production and transport
-Increased freight, insurance, and logistics expenses, especially for global supply chains
-Delays and longer transit times as shipping routes are adjusted
Even for companies with limited or sanctioned trade with Iran, these indirect effects through global trade corridors and energy markets are driving higher costs and strategic uncertainty across European businesses.