Middle East conflict hits shipping, oil prices in International Shipping News 05/03/2026 Middle East escalation affects global shipping, oil prices The latest escalation in the Middle East is rippling quickly through trade. Oil and natural gas prices have jumped since US and Israeli strikes on Iran on 28 February. Brent crude – the international benchmark – rose as much as 13% in early trading on 2 March, briefly above $82 a barrel, as traders reacted to disrupted flows from the Gulf. Around 20% of global oil and a similar share of LNG normally transit the Strait of Hormuz, a key shipping lane on Iran’s southern border. At the time of writing, around 150 ships had dropped anchor in the waterway, including those carrying oil and natural gas. Meanwhile, several ports suspended operations in the Middle East after drone strikes. DP World said operations at Jebel Ali port in Dubai, one of the world’s busiest container ports, had been suspended due to a fire after “aerial interception”, the Financial Times reported. Analysts note that the direct impact is most acute for energy‑importing economies in Europe and Asia, and warn that a prolonged closure could feed through into higher inflation and renewed supply‑chain volatility worldwide. 2. Trump’s tariffs ruled illegal Last month, the US Supreme Court issued a landmark 6-3 ruling finding the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose wideranging tariffs exceeded the president’s statutory authority. The decision triggered a series of policy and market responses, including: The administration swiftly announced a 10% global tariff on all imports under Section 122 of the Trade Act of 1974, effective 24 February, potentially to be increased to 15%, the statutory maximum. These tariffs are limited to 150 days unless extended by Congress. European Parliament lawmakers put work on the EU-US trade deal on hold, requesting clarification from Washington before the process resumes. The US and India deferred trade deal talks that were due to take place in Washington, to “study the implications” of the Supreme Court ruling. More than 900 companies have sued the White House over the tariff regime, the Financial Times reported on 26 February. Refunds could cost the government more than $160 billion. 3. US goods trade deficit grows The US recorded a $1.24 trillion goods trade deficit in 2025, the highest level on record, and up 2.1% on 2024, according to official data released on 19 February. The total trade deficit shrank slightly, supported by an expanding trade surplus in services. The monthly goods and services deficit in December widened by 32.6% to $70.3 billion, the Census Bureau and the Bureau of Economic Analysis announced, with exports falling and imports growing despite wide-sweeping tariffs. Overall goods imports reached $3.44 trillion in 2025, led by capital goods such as computers and telecoms equipment. While the US trade deficit with China fell, it was offset by increases in trade deficits with other nations. US imports from China fell by $130.4 billion to $308.4 billion, while imports from Taiwan and Viet Nam increased, by $85.2 billion and $57.3 billion respectively. 4. News in brief: Trade stories from around the world More than 3,000 new trade and industrial policy measures were introduced globally in 2025 – more than three times the annual level recorded a decade ago. The World Economic Forum’s Global Value Chains Outlook 2026 found that