Breakbulk shipping in the Gulf faces growing uncertainty amid US–Iran conflict in International Shipping News 09/03/2026 The US strikes on Iran followed by Iran’s announcement about the closure of the Strait of Hormuz to shipping, created uncertainty among multipurpose vessel operators and breakbulk shippers in the Middle East. While oil and gas shipments are most at risk, breakbulk cargo is also substantial, constituting about 5% of global seaborne cargo volumes, and the impact in the region is significant. Saudi Arabia, especially at Jubail, and the UAE, particularly at Jebel Ali Port are major centres for project cargo and industrial shipments. Iranian state media reported that the Islamic Revolutionary Guard Corps (IRGC) warned ships not to pass through the Strait, since there would be consequences. As a result, vessels already in or near the area stopped and took shelter off Oman and nearby waters. Drewry AIS data indicated that transits had already increased in February in anticipation of trouble in the region. Key breakbulk trade in the Middle East Major breakbulk exports include: Petrochemicals and plastics Aluminium and steel Oil and gas equipment Fertilisers Sulphur, reduced iron ore and construction materials Major breakbulk imports include: Project cargo and heavy machinery Construction materials Agricultural products Industrial components The Gulf’s construction and industrial sectors rely heavily on Multipurpose and Handysize dry bulk vessels to move machinery, chemicals, grain and other essential goods. Any prolonged disruption at Hormuz would therefore strain regional supply chains. Immediate impacts of the closure Higher war risk premiums: Insurance costs surge due to higher war risk premium. Rising bunker costs: Escalating oil prices increase fuel expenses, directly affecting voyage economics. Operational delays: Ships face extended waiting times, disrupting schedules and contractual commitments. Route diversification: Operators actively seek alternative corridors increasing tonne-miles and thereby shipping demand. Alternative routing options Omani and Red Sea gateways: Ports like Duqm and Sohar in Oman, Khorfakkan in the UAE, and Jeddah in Saudi Arabia could take on extra cargo, with rail and road links helping move goods inland. This would translate to longer transit times and higher logistics costs, which may not be sustainable over an extended period. However, project cargo above a certain unit size would likely not be able to move inland. Gulf of Aqaba corridor: Ships could go through Aqaba and then use overland transport, but limited infrastructure and regional stability make it hard to scale up this option. Project cargo outlook amid escalation In the short term, refinery shutdowns and damage to infrastructure in Iran after drone and missile strikes will lower industrial output and slow down energy and construction projects. However, when the conflict ends, rebuilding could lead to surge in the demand for project cargo, especially heavy machinery, oil and gas equipment, steel structures, power generation parts, and industrial materials. In the past, rebuilding after conflicts has led to more imports of capital goods and engineering equipment, and Iran could see the same activity once trade routes are stable and financing is available again. How quickly and how much the market recovers will depend on how long the Strait of Hormuz stays closed and what happens politically. Even a one-week shutdown of the Strait wo