Fordham professor Sarah Jinhui Wu explains how rising tensions with Iran could disrupt shipping routes, energy markets, and global supply chains. The escalating tensions between the United States and Iran are causing significant concerns about potential disruptions to global trade routes, particularly the Strait of Hormuz, a critical chokepoint for energy shipments. Instability in the region could affect shipping networks, energy prices, and supply chains worldwide. The uncertainty first manifests as supply chain variability, which is detrimental to lean systems. Shipping lead times become unreliable as carriers slow down, reroute, or pause sailings, necessitating more buffer to hedge risks. This leads to increased expedited moves, higher safety stocks, and more multi-sourcing, especially for energy-dependent inputs. The conflict in the Middle East translates into higher costs for fuel and freight through two main channels: threats to supply continuity and shipment schedules create an energy price shock, and logistics cost shocks increase freight prices. The Strait of Hormuz is a major chokepoint, and even partial disruptions can quickly change price expectations. Beyond energy, sectors like plastics, packaging, consumer goods, food, and manufacturing are affected due to their reliance on energy. Airline operations are heavily impacted, with thousands of flights canceled and key Gulf airspace closed. Disruptions in trade routes, including the Strait of Hormuz, create network-level side effects such as longer transit times, capacity squeeze, and equipment imbalance. Insurance companies may charge higher premiums or refuse coverage, leading to last-minute carrier switches. Consumers in the U.S. could feel the impact quickly at the gas pump, while goods on store shelves may take weeks to months to reflect changes. Supply chain leaders should monitor the duration and degree of Hormuz disruption, insurance availability, and contagion to other lanes, as these factors could spread inflation beyond energy. The core issue is not just higher short-term costs but variability, which necessitates resilience through redundancy, buffers, or flexibility, increasing costs.