The ongoing U.S.-Iran conflict is restricting shipping, energy, and payment conditions throughout the Gulf. Construction projects in the Middle East are already experiencing impacts on procurement, scheduling, cash flow, and claims.
When construction clients discuss the U.S.-Iran war, the conversation quickly turns to practical issues. They are less worried about geopolitics and more focused on delayed equipment, changing supplier prices, stricter payment processes, tougher notice requirements, and the chance that a project dispute could end up in arbitration.1
The Strait of Hormuz is central to these concerns. Disruptions in this area impact freight, insurance, fuel supplies, industrial inputs, and shipping schedules throughout the region. Recent assessments by the International Energy Agency, UNCTAD, and the International Maritime Organization (IMO) indicate that the conflict has significantly affected energy trade flows and merchant shipping, with ship transits through Hormuz
