"“The war in the Middle East created a new wake-up call with significant disruptions, both to the flows in and around the Middle East, but also to our energy supply,” CEO Vincent Clerc told CNBC's “Squawk Box Europe” on Thursday. “We are a highly energy-intensive industry, and that has created a whole new set of circumstances that we now have to deal with, and that will have an important impact on the second and third quarter.”"
"“The Strait of Hormuz, the chokepoint through which one-fifth of the world's oil passes, has remained effectively closed for the duration of the war in Iran, sending and keeping oil prices above $100 per barrel. The price was about $105 as of Friday, still elevated above the pre-war $70, as the market attempts to make sense of mixed signals of peace talks between the U.S. and Iran, which could reopen the trade passage.”"
"“Goldman Sachs analysts previously predicted that if supply chain disruptions continue, oil prices could remain elevated through 2027. Just two months in, there are already consequences from the shock, like Spirit Airlines ending operations, unable to afford rising jet fuel costs.”"
"“Now, Maersk, the second largest shipping company in the world that operates 700 vessels and ships about 14% of global containerized goods, is saying the prolonged war is affecting logistics. The company already suspended two key vessel crossings in March that connected the Far East to the Middle East, and the Middle East to Europe.”"
A prolonged war in Iran is increasing inflation odds while slowing consumer demand, creating pressure on global shipping. The war has caused disruptions to Middle East trade flows and energy supply. Container shipping is highly energy intensive, so energy disruptions are expected to affect near-term results. The Strait of Hormuz has been effectively closed, with about one-fifth of the world’s oil passing through it, keeping oil prices above $100 per barrel. Oil prices remain elevated above pre-war levels as markets weigh mixed signals from U.S.-Iran peace talks. Supply chain disruptions could keep oil prices elevated through 2027, and rising fuel costs have already forced airlines to stop operations. Maersk has suspended key vessel crossings and warned that prolonged conflict is affecting logistics.
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