The disruption in the Iran Strait of Hormuz is a major maritime chokepoint event affecting shipping capacity, transit times, pricing for energy and industrial commodities, and supply chains across the globe. A substantial portion, reportedly up to 47%, of global seaborne trade transits the Strait of Hormuz, and this disruption has contributed to elevated pricing and reduced reliability across multiple commodity categories that make up a substantial part of the automotive supply chain. It has been coined “the largest oil disruption in 50 years.” Specifically, buyers and sellers are reporting product damage, price volatility and increases, insurance and risk-transfer constraints, and more frequent disruption through delays, precautionary hoarding behavior, and “just-in-case” inventory management strategies. Even if the war ends soon, which is very uncertain at this time, recovery times are expected to be substantial–oil fields can restart within days once exports normalize, but other
