The 2026 Iran-Israel conflict is associated with major disruptions in global oil markets and international maritime trade, particularly through the Strait of Hormuz, one of the world’s most critical oil transit chokepoints. This study aims to analyse the impact of the conflict on global oil prices and maritime trade routes. It also examines disruptions in shipping activity, including changes in vessel traffic and trade volumes. The research is based on a quantitative descriptive approach combined with time-series analysis using secondary data collected from the International Monetary Fund (IMF) PortWatch, International Energy Agency (IEA), U. S. Energy Information Administration (EIA) and LSEG Datastream. Trend analysis and percentage change analysis were used to compare pre-conflict (2019-2025) and conflict-period (2026) conditions. The findings reveal that total vessel traffic declined from 2, 935 transit calls in March 2025 to only 158 in March 2026, representing a 94. 6% decrease, while total trade volume fell by approximately 97. 3% during the same period. Tanker traffic and oil shipments experienced the sharpest decline. At the same time, Brent crude oil prices increased from around 60 per barrel in January 2026 to a peak of over 118 per barrel in April 2026. Furthermore, the conflict contributed to rising petrol prices across more than 95 countries. Although alternative routes such as the Saudi East-West Pipeline, UAE Fujairah Pipeline and SUMED Pipeline provided partial relief, their combined capacity remained insufficient to fully replace the strategic role of the Strait of Hormuz. The study concludes that the conflict exposed the vulnerability of global energy and maritime systems to geopolitical instability. It highlights the need for energy diversification, strategic reserves and alternative trade routes to strengthen global energy security and reduce future economic risks.
Dr. Tabassumbanu Aiyubbhai Kaji (Thu,) studied this question.