The ongoing conflict in the Strait of Hormuz is expected to lead to a significant rise in global oil shipping costs in 2027.
What happened
The critical waterway has been divided into two routes, with one controlled by the Islamic Revolutionary Guard and the Persian Gulf Strait Authority, and the other secured by a US naval blockade and escorting commercial ships along Oman's coastline.
Despite the existence of an alternative route, shipping costs are likely to increase if Iranian attacks on tankers continue or the war escalates, affecting not only oil prices but also grocery and heating bills.
The situation is being closely monitored, with concerns that the conflict could lead to further disruptions in the global oil supply chain.
