Geopolitics boost freight rates but pose challenges to shipowners elsewhere

Iran's seizure of the Strait of Hormuz following its war with Israel and the US (starting Feb. 28, 2026) has reduced maritime traffic through the choke point by 90%, causing major disruptions to tanker and bulk shipping routes and stranding vessels in the Persian Gulf. This has triggered significant freight rate surges across dirty tankers, dry bulk, and container segments, with shippers rerouting cargo via longer alternative routes.