Industry analysts indicate that recent strikes on Iran could disrupt shipping lanes, increase freight rates, and elevate energy prices. The joint military action by the U.S. and Israel aims to halt Iran's nuclear weapon development, potentially leading to higher energy prices and restricted Middle Eastern shipping routes, adding pressure to global freight networks. Bruce Chan from Stifel highlights the closure of the Strait of Hormuz as a major impact, reducing traffic through the Suez Canal and Red Sea, which had just begun to normalize after disruptions in late 2023. The conflict may limit global fleet capacity and keep container rates high. Daniel Moore from Baird & Co. notes the significance of the Strait of Hormuz, through which about 20% of global oil liquids and one-third of seaborne crude oil are transported. The immediate consequence is rising energy prices, but the effects could extend further, with shipping corridor disruptions potentially increasing container rates and insurance premiums. Shippers might shift cargo to air freight to mitigate delays, raising demand and rates in that sector. The direct economic impact on U.S. and European markets is expected to be limited.