US-Iran War Disrupts Hormuz and Bab el-Mandeb Shipping Routes

 US-Iran War Disrupts Two Major Shipping Routes, Raising Global Oil Supply Concerns

By Lamiel Side News | October 17, 2026

The ongoing conflict between the United States and Iran is disrupting important maritime trade routes in the Middle East, increasing concerns about global oil supplies, shipping costs and the wider economic impact on countries that depend on imported energy.

Two waterways are at the centre of the crisis: the Strait of Hormuz, near Iran, and the Bab el-Mandeb Strait, which connects the Red Sea with the Gulf of Aden. Both are strategically important for international trade, particularly the movement of crude oil and petroleum products.

Recent attacks on commercial vessels have raised security concerns among shipping companies and energy traders. The United Kingdom Maritime Trade Operations (UKMTO), which monitors maritime security, has reported multiple incidents involving ships travelling through the Strait of Hormuz. Authorities have said investigations into several incidents remain ongoing.

Why the Strait of Hormuz Matters

The Strait of Hormuz is one of the world's most important energy shipping routes. Oil produced by Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and Iran, among other regional producers, moves through the Persian Gulf and surrounding waterways.

When ships face attacks, naval restrictions or threats to their safety, shipping companies may delay voyages, change routes or demand higher insurance premiums. These disruptions can increase the cost of transporting oil, even when some supplies continue to reach international markets.

Reports of attacks and restrictions linked to the US-Iran conflict have also complicated efforts to move energy shipments through the region. The situation has contributed to volatility in oil markets, with prices remaining sensitive to developments around the Gulf.

The longer shipping disruptions continue, the greater the risk that higher transport costs will feed into fuel prices and other goods.

Bab el-Mandeb Adds Another Risk

The Bab el-Mandeb Strait is another critical passage for international commerce. Located between Yemen and the Horn of Africa, it provides access between the Red Sea and the Gulf of Aden and forms part of a major route connecting Europe and Asia through the Suez Canal.

The security situation around Yemen has added another layer of uncertainty. Houthi attacks and threats against commercial shipping in the Red Sea region have previously forced some vessels to take longer routes around the Cape of Good Hope in southern Africa.

Longer journeys can mean higher fuel consumption, delayed deliveries and increased freight costs. These expenses can affect not only oil shipments but also containerised goods, manufactured products and other cargo transported between major trading regions.

If threats spread across both the Strait of Hormuz and Bab el-Mandeb, shipping companies could face even greater difficulty planning safe and reliable journeys.

Oil Prices and the Global Economy

Oil markets react not only to actual supply shortages but also to the risk of future disruptions. When traders believe that fewer shipments may reach refineries, prices can rise as buyers compete for available supplies.

Higher crude oil prices can increase the cost of petrol, diesel, aviation fuel and transport. Businesses may also face higher expenses for electricity generation, manufacturing, logistics and food distribution.

However, the final effect on consumers depends on several factors, including the scale and duration of the disruption, government policies, exchange rates, available reserves and the ability of producers to supply alternative routes.

Energy analysts have warned that countries heavily dependent on imported oil could face particular challenges if the conflict continues. Some governments and companies may respond by drawing on strategic reserves, reducing fuel consumption, diversifying suppliers or investing in alternative energy sources.

What the Crisis Could Mean for Nigeria

Nigeria is a major crude oil producer, but international oil-market disruptions can still affect its economy in several ways.

Higher global oil prices could increase the value of Nigerian crude exports, potentially improving government revenue if production levels, export volumes and other conditions remain favourable.

At the same time, higher international energy prices can increase the cost of imported petroleum products and place pressure on transport and production costs. The impact on Nigerian consumers would depend on domestic fuel prices, exchange-rate movements, refining capacity and the country's wider economic conditions.

For businesses, higher shipping and insurance costs may also make imported machinery, raw materials and consumer goods more expensive. These pressures can contribute to inflation and reduce household purchasing power.

Nigeria's overall outcome would therefore depend on whether the benefits of stronger crude prices outweigh the additional costs and other economic pressures.

Alternative Routes May Help, but Cannot Remove Every Risk

Oil producers and shipping companies can explore alternative ports, pipelines and transport arrangements to reduce dependence on vulnerable waterways. Strategic petroleum reserves can also help some countries manage temporary supply interruptions.

However, alternative infrastructure takes time to develop and may not have enough capacity to replace the volumes normally transported through major shipping routes.

Longer shipping routes also require more fuel and time, potentially keeping freight costs elevated even when cargo can still reach its destination.

What Happens Next?

The outlook for global energy markets will depend heavily on the security situation in the Middle East, the movement of commercial vessels and any diplomatic efforts to reduce the conflict.

A sustained reduction in attacks and restrictions could help restore confidence among shipping companies and ease pressure on transport costs. Further escalation, however, could increase uncertainty and create additional risks for oil supplies and international trade.

For governments, businesses and consumers, the crisis highlights the importance of reliable supply chains, diversified energy sources and contingency plans for sudden disruptions.

Sources: UK Maritime Trade Operations (UKMTO) incident reports; Reuters reporting on oil shipping and energy markets; Associated Press reporting on maritime security in the Strait of Hormuz.

Editorial note: This report summarises developments reported by the cited sources. Responsibility for individual attacks and other disputed events should be attributed to reliable reporting or official findings rather than assumed before investigations are complete.