Global Supply Chain Disruptions Intensify Amid Israel-Iran Conflict

The escalation between Israel and Iran is impacting logistics on a global level. National strikes are affecting critical services at the Port of Antwerp-Bruges with pilotage delays and partial lock closures slowing vessel movements. With tension increasing, inbound and outbound traffic is primarily hampered by suspended pilotage services; a key entry point for North Sea shipping. Lock operations were also severely affected. Kallo, Boudewijn, and Zandvliet locks were closed, whereas Kieldrecht and Van Cauwelaert served only inland traffic. Approximately 50 seagoing vessels were stranded (29 waiting to depart and 31 waiting to arrive). Meanwhile, container carriers are rerouting vessels around Africa to avoid the Red Sea, which has impacted Antwerp’s critical role in Europe's logistics network. These reroutes have triggered higher insurance premiums and shipping surcharges, and have led to increasing transit times by 7–10 days, and have added roughly one million dollars per voyage.

The availability of oil is also in question as the world prepares for the possibility that Iran closes the Strait of Hormuz, through which about 20% of the world’s oil supply passes. Not only would the closure of the Strait of Hormuz drastically increase the price of oil, but it would stop oil exports altogether for many countries, causing a nationwide shortage of imported goods.

Further, flights over Iran and Central Asia have either been suspended or rerouted due to the conflict. Longer aviation routes are resulting in longer flight times and higher fuel costs. Those ordering time-sensitive cargo via planes are experiencing delays or, in some cases, undelivered goods. Should the tensions continue to escalate between countries, we are likely to experience further impacts throughout the supply chain of demand.

Contributor: Rolando Gazquez

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References:

https://www.npr.org/2025/06/25/nx-s1-5444030/oil-prices-iran-israel www.macmillanscg.com/blog/supply-chain-disruption-2025

https://www.portofantwerpbruges.com/en/news/crisis-update-disruption-due-national-strike-day- 25-june