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Iran-Israel conflict poses threat to trade routes

21 Jun '25
3 min read
Iran-Israel conflict poses threat to trade routes
Iran-Israel conflict poses threat to trade routes

Insights

  • The ongoing Israel–Iran conflict threatens to disrupt vital shipping lanes such as the Strait of Hormuz, raising freight costs for apparel exporters.
  • Rising oil prices could squeeze margins across fibre, textile and garment manufacturing hubs such as Bangladesh.
  • Could a prolonged conflict force fashion brands to rethink global sourcing models?

Major container lines have already rerouted vessels around the Cape of Good Hope to avoid the Red Sea and Gulf regions, increasing transit times and freight expenses.

Analysts warn that bypassing Hormuz would shift traffic to Indian West Coast ports, risking congestion and further rate hikes. Persian Gulf trans-shipment hubs such as Jebel Ali and Khalifa Port could also face disruptions, compounding delays for textile raw materials and finished goods. With ocean freight rates already volatile, how prepared is the fashion industry for prolonged logistical bottlenecks?

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