Quote
Customer Advisory: Middle East Conflict Escalates Following U.S. Airstrikes on Iran
Jun. 23, 2025
Customer Advisory
Middle East Conflict Escalates Following U.S. Airstrikes on Iran
In the early hours of June 21, 2025, the United States conducted airstrikes on multiple targets inside Iran, targeting the country’s nuclear-related infrastructure. The strikes mark a serious escalation in regional tensions, prompting warnings of further retaliation and drawing heightened concern from global stakeholders.
Following the June 21 strikes, Iran launched a series of missile attacks between June 22–23 targeting U.S. forces in Qatar and Iraq, and later resumed missile attacks against Israel. The situation remains fluid, with implications for the global logistics and trade environment.
Potential Logistics Impacts:
- Oil and Fuel Supply Risks: Roughly one-fifth of the world’s oil supply transits through the Strait of Hormuz. A retaliatory move by Iran to disrupt this chokepoint could sharply impact oil tanker traffic and lead to rising fuel prices, increasing costs across ocean, air, and road freight.
- Maritime Shipping Disruption: Shipping lines may avoid the Persian Gulf and Red Sea amid rising threat levels, potentially increasing transit times and congestion at alternative routes (such as around the Cape of Good Hope). Insurers are also expected to raise war risk premiums, further raising freight costs.
- Airspace Closures and Flight Delays: Flight paths over Iran and neighboring regions may be restricted or avoided, forcing rerouting of key air cargo corridors between Asia, Europe, and North America. Extended flight times and limited capacity could result in higher costs and delays.
- Qatar temporarily closed its airspace following Iran’s missile strike on the U.S. Al Udeid Air Base. Flights in and out of Doha—a major global transit hub—were disrupted, causing reroutes and cancellations.
- Other regional closures: Bahrain, Kuwait, the United Arab Emirates, and Iraq also shut their airspace temporarily around the same time, citing safety concerns.
- Ongoing delays and re-routings are expected even as some airspace restrictions are lifted, impacting transit times and air cargo availability across Middle East corridors.
- Port Operations and Regional Volatility: Ports in the Gulf—including those in the United Arab Emirates, Saudi Arabia, and Oman—may experience throughput slowdowns due to military activity or heightened security concerns. Ongoing tensions in the Red Sea corridor and Bab el-Mandeb Strait add to the risks for container and oil shipments.
- Global Supply Chain Effects: Shippers reliant on time-sensitive supply chains (e.g., electronics, auto parts, pharmaceuticals) may face delays or inventory shortfalls. Volatility in freight rates, demand shifts, and alternative sourcing strategies are expected as the situation evolves.
- Regulatory and Insurance Considerations: New U.S. or allied sanctions could affect shipments transiting the Middle East or involving dual-use goods. Shippers should also expect higher insurance premiums or exclusions related to war risk coverage.
Kintetsu World Express is closely monitoring developments in coordination with our global partners. We will continue to provide guidance as conditions evolve and remain committed to supporting our customers with flexible solutions and timely updates. For further assistance, please contact your KWE representative.
Sources: