The Iran war and global trade: Will the Cape route become the new normal?
Luojiashan tanker sits anchored in Muscat, as Iran vows to close the Strait of Hormuz, amid the US-Israeli conflict with Iran, in Muscat, Oman, March 7, 2026.
Events in the Middle East during February and March 2026 again disrupted the flows of shipping trade to the eastern and western spheres of the international system.
Given that the global economy is maritime based and rests on secure and predictable flows of goods by sea, the armed attacks on Iran and their maritime spillovers sharply underlined the vulnerability of global maritime trade and its value, which is embedded in safe and predictable deliveries of goods in the interconnected global system.
