Hormuz disruption persists, trade costs rise

By Nathan Morley

US President Donald Trump says a ceasefire is still in place with Iran, despite a clash between Iran and US naval destroyers in the Strait of Hormuz for which both sides blamed the other.

On Friday, in a further sign of the shakiness of the ceasefire, the UAE said its air defences were actively engaging with an missile and drone attack from Iran.

Meanwhile, international trade is continuing to suffer from the massive disruption caused by the closure of the Strait.

The chief executive of Danish shipping giant Maersk says the company is passing on sharply higher costs to customers as the war in Iran continues to disrupt global trade. Vincent Clerc said cargo shipments have been heavily affected by the closure of the Strait of Hormuz and warned that an immediate reopening would not resolve the backlog or restore normal operations.

Insurers may continue to classify the area as high‑risk even if traffic resumes, meaning many vessels will still avoid the route, keeping freight rates elevated and energy markets tight.

The strait, which normally carries about 20% of the world’s oil and liquefied natural gas, has been effectively blockaded by Iran since late February, when U.S. and Israeli forces began attacking Iranian targets. The United States has also imposed its own blockade on Iranian ports, saying it has stopped dozens of ships.

Although the U.S. and Iran announced a ceasefire in early April — under which Iran halted drone and missile strikes on Gulf states including the UAE — only a small number of vessels have been able to transit the strait since then.