Iran war is hitting unexpected global supply chains

As the Iran war enters its seventh day and US and Israeli strikes continue, the conflict is disrupting supply chains for goods ranging from food and medicines to electronics and electricity.

While the massive maritime bottleneck in the Strait of Hormuz is sending shockwaves through the energy sector, it is also delaying critical shipments of Indian pharmaceuticals, Asian semiconductors, and Middle Eastern fertilizers.

The Strait transits nearly 20% of the world’s oil.

According to Clarksons Research’s shipping data, over 3,200 ships are currently idle in the Persian Gulf.

Shipping giant Maersk said it is rerouting vessels through the Cape of Good Hope in Africa—a journey that adds up to 14 travel days and $1 million extra in fuel per ship, says a Syracuse University supply chain practice professor.

Experts warn of a “domino effect” that the longer shipping routes and higher fuel prices could lead to widespread product shortages and significant price hikes for consumers.

The US government is attempting to stabilize trade by providing Navy escorts and specialized political risk insurance for tankers transiting the region. The insurance would cover financial losses stemming from unstable political conditions.

President Donald Trump also told reporters that he needs to be fully involved in picking the next Iranian leader, while adding that the son of assassinated supreme leader Ali Khamenei “is a lightweight.”

The Republican-controlled House narrowly defeated a resolution on Thursday that sought to restrict President Trump’s military operations in Iran. House Minority Leader Hakeem Jeffries criticized the outcome, arguing that America is entering a costly, “endless conflict” amid domestic issues such as the rising cost of living.