Iran seized a container ship in the Strait of Hormuz on Saturday morning, this is 'extremely concerning' and threatens to put trade lanes in the Middle East at risk.
It has been reported that the MSC Aries was seized by Iran Revolutionary Guards 50 nautical miles (92 km) northeast of Fujairah, an area close to the Strait of Hormuz that forms the entrance to the Arabian Gulf.
The latest incident follows ongoing conflict in the Red Sea region - the gateway to the Suez Canal - which has seen ocean freight container ships avoiding the area due to missile attacks by Houthi militia.
Peter Sand, Chief Analyst at Xeneta, said: "An already bad situation in the Red Sea and Gulf of Aden has just got worse and could put ocean freight container imports and oil exports in the Middle East at risk.
"We don't yet know the full details of the incident in the Strait of Hormuz, but any widening of the conflict which has already resulted in huge disruption to ocean freight services in the Red Sea region would be extremely concerning.
"For example, Dubai is a regional hub for imports as well as sea-air corridors, with containers arriving by ocean via the Strait of Hormuz for onward travel by air to Europe and North America. If ships are impacted from sailing into the Arabian Gulf then the disruption would be considerable."
