With the military conflict between the United States and Iran nearing its third month, disruptions to ship traffic and oil supplies through the Strait of Hormuz have become one of the war's most closely watched economic consequences.
Before the conflict began, the Strait of Hormuz, a key maritime route between Iran and the United Arab Emirates, handled an average of 20 million barrels of oil per day, accounting for roughly 25% of global seaborne oil trade. But while the war has disrupted shipping routes across the Middle East, other trade corridors have benefited from the instability.
According to an investigation by BBC World, traffic through the Panama Canal has increased by about 11% since the start of the conflict as oil companies seek safer alternative routes.
In response to the increased demand, the canal also has raised transit fees.
Although rates vary depending on vessel size, the Panama Canal has at times doubled its prices through a slot auction system that allows companies without reservations to secure faster passage. The more urgent the transit request, the higher the fee companies are willing to pay, BBC World reported.
Víctor Vial, chief financial officer of the Panama Canal Authority, told the outlet that the increase in traffic and revenue generated through the auctions suggests revenue growth could reach between 10% and 15%, though he said it remains unclear how long the situation will last.
Marc Gilbert, global lead of the Boston Consulting Group's Center for Geopolitics, told BBC World that the United States is now supplying oil to Asia that previously came from Gulf exporters before the conflict began. As a result, U.S. oil shipments crossing the Panama Canal are nearing their highest levels in four years.
U.S-Iran fail to reach a deal
As oil prices continue to rise, the United States and Iran remain in talks aimed at ending the conflict. But negotiations stalled again this week after Tehran refused to make immediate nuclear concessions and instead pushed for a permanent ceasefire before addressing its uranium program, according to officials familiar with the discussions.
With no agreement in sight, Iran has continued its blockade of the Strait of Hormuz, which has been in place since early March. Tehran now claims control over the narrow maritime corridor and has reportedly explored implementing a toll system for vessels crossing Hormuz.
The standoff has further heightened concerns over global energy markets and shipping disruptions, even as alternative trade routes such as the Panama Canal continue seeing increased demand.
In a recent interview, U.S. Treasury Secretary Scott Bessent told CNBC that the administration's priority remains reopening the strait, adding that China has a "much bigger interest" in restoring access than the United States.
Bessent spoke from Beijing, where he is accompanying President Donald Trump on a diplomatic visit to China.
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