Politics
Hormuz, Suez, Taiwan Strait: Why the world’s supply chains now need war
An interim deal between the US and Iran on June 17 reopened the Strait of Hormuz following a blockade, though shipping traffic remains well below pre-conflict
Key takeaways
- An interim deal between the US and Iran on June 17 reopened the Strait of Hormuz.
- Shipping traffic in the Strait of Hormuz remains well below pre-conflict levels.
- Houthi rebels announced a complete ban on Israeli ships transiting the Red Sea on June 8.
- A Chinese air and sea blockade of Taiwan would prompt a projected 5 percent fall in global GDP.
- Donald Trump has repeatedly called for the US to regain control of the Panama Canal.
An interim deal between the US and Iran on June 17 reopened the Strait of Hormuz following a blockade, though shipping traffic remains well below pre-conflict levels and shipowners remain wary. The crisis has highlighted global vulnerability across key maritime chokepoints, including the Bab el-Mandeb Strait where Houthi rebels announced a total ban on Israeli ships on June 8, and the Taiwan Strait, where intensifying Chinese military activity in 2026 threatens global semiconductor supplies. Meanwhile, US President Donald Trump has called for the US to regain control of the Panama Canal to counter growing Chinese influence.
In their words
“Shipping is literally caught in the crossfire as the US and Iran battle for control of the Strait of Hormuz”
By the numbers
- 138
- Daily ship transits through Hormuz before the war
- 1,000
- Additional US troops deployed to the Middle East
- 23.2M
- Barrels of oil per day passing Malacca in 1H 2025
- -5%
- Projected fall in global GDP from Taiwan blockade
- 40%
- US container traffic passing through the Panama Canal
How it unfolded
- Ever Given blocks the Suez Canal for six days
- China accounts for 21.4% of Panama Canal cargo
- Trump returns to the White House
- Houthi rebels announce complete ban on Israeli ships
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Common questions
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- An interim deal between the US and Iran on June 17 reopened the Strait of Hormuz.
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