The attacks on Iran by the US and Israel have caused disruptions for ships transiting the Strait of Hormuz, impacting around 4% of dry bulk cargo volumes.

Disruptions in the region have already led to a decline in traffic, with the number of bulk carrier sailings in these first days of March falling to less than a third of the levels seen in the previous week.

Iranian forces have threatened to attack ships in the Strait, and the United States has so far advised ships to avoid the conflict zone. At least five ships are known to have been attacked.

Grains, iron ore and steel are the largest dry bulk commodities transported via the Strait of Hormuz to ports in the Persian Gulf, accounting for 59% of inbound volumes. Brazil and Argentina supply a significant share of the region’s iron ore and grain imports while China is a major steel exporter.

Limestone, sulphur and urea dominate dry bulk shipments from the Persian Gulf to global markets, representing 69% of outbound volumes. 52% of global limestone shipments sail from the UAE via the Strait of Hormuz, mainly to India and Bangladesh for use in cement and steel production. Similarly, the Persian Gulf is the source of 45% of global sulphur shipments and 27% of global urea shipments delivered across the world.