Middle East Shipping Update: Red Sea, Suez Canal and Strait of Hormuz
Update: July 23rd, 2026
Global shipping continues to face uncertainty as tensions across the Middle East remain elevated. While diplomatic efforts between the United States and Iran have helped ease fears of a wider regional conflict, the security situation has not fully stabilised. For importers and exporters across the UK, USA and Europe, the key question remains the same: Can cargo move safely through one of the world’s most important shipping corridors?
The good news is that both the Strait of Hormuz and the Suez Canal remain open to commercial shipping. However, that does not mean operations have returned to normal.
Shipping lines continue to make routing decisions based on daily security assessments, naval intelligence and insurance requirements. As a result, transit patterns remain fluid, with some carriers resuming services through the region while others continue to divert vessels around the Cape of Good Hope.
Strait of Hormuz Remains Open
The Strait of Hormuz is one of the world’s most strategically important waterways, connecting the Arabian Gulf with the Gulf of Oman and the Indian Ocean. Approximately one-fifth of global oil supplies and a significant volume of containerised cargo normally pass through this narrow shipping lane.
Despite speculation earlier this year that the Strait could be closed following renewed military tensions, the waterway remains open.
Commercial vessels continue to transit the Strait, although volumes remain below historical averages. Many shipowners are proceeding cautiously, with crossings approved only after comprehensive risk assessments and in close coordination with maritime security authorities.
For carriers operating services into the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Iraq, vessel schedules continue to be reviewed on a voyage-by-voyage basis.
The Suez Canal Is Open, But the Red Sea Remains the Challenge
While the Suez Canal itself continues to operate normally, the biggest operational concern lies further south.
The Bab el-Mandeb Strait and southern Red Sea remain high-risk areas following ongoing Houthi attacks and renewed threats against commercial shipping. Although international naval forces continue to patrol the region, shipping companies remain cautious about sending vessels through the corridor.
For many global carriers, the decision is no longer about whether the Suez Canal is open. Instead, it is about whether the entire Red Sea transit can be completed safely.
This distinction is important because vessels travelling between Asia and Europe must first navigate the Red Sea before reaching the Suez Canal.
Shipping Lines Continue to Take Different Approaches
The global container shipping industry has adopted a cautious and flexible approach.
Several major carriers, including Maersk, have gradually reintroduced selected services through the Red Sea after conducting detailed security reviews. These resumptions remain limited and are closely monitored.
Other operators continue to reroute vessels around the Cape of Good Hope, accepting longer transit times in exchange for reduced security risks.
Rather than implementing permanent network changes, most shipping lines are adjusting services according to the latest intelligence, insurance guidance and naval recommendations.
This means routing decisions can change quickly should conditions deteriorate.
Impact on UK and USA Supply Chains
Although shipping lanes remain open, the ongoing instability continues to affect global logistics.
Importers across the Globe may continue to experience:
- Longer transit times on selected Asia-Europe services
- Higher freight rates due to longer voyage distances and increased operating costs
- Elevated war risk insurance premiums
- Schedule changes with limited notice
- Equipment imbalances at certain ports
- Continued pressure on supply chain planning
What Should Shippers Expect?
The current outlook remains cautiously optimistic.
Diplomatic engagement between the United States and Iran has reduced concerns of an immediate escalation, but security risks across the Red Sea continue to influence carrier decisions. As a result, most shipping lines are expected to maintain a flexible operating model throughout the coming weeks.
Customers shipping cargo between Asia, Europe, the Middle East, the UK and North America should continue to allow additional transit time where possible and remain prepared for schedule adjustments should regional conditions change.
Our Advice
At present, the Strait of Hormuz remains open, the Suez Canal is fully operational, and commercial shipping continues to move through both waterways. However, security conditions remain dynamic, particularly in the Red Sea, where carriers continue to assess risks on a voyage-by-voyage basis.
Our team is monitoring developments closely and remains in regular contact with shipping lines, carriers and global partners. We will continue to provide timely updates as the situation evolves and work with customers to minimise disruption wherever possible.
For businesses moving freight internationally, maintaining flexibility and planning ahead remain the best strategies while the region continues to stabilise.