Middle East Supply Chain Disruption Due to Iran War

A war triggered by Israeli-US strikes against Iran on February 28 has led to significant disruptions in the supply chain across the Middle East. The strategic Strait of Hormuz is effectively closed, and daily Iranian drone and missile attacks are hindering air transport. This has caused major ports in the United Arab Emirates, Qatar, Kuwait, and Bahrain to suspend or reduce cargo processing. Consequently, countries heavily reliant on imports, such as Bahrain and Kuwait, are experiencing noticeable price increases for food products, with meat prices almost doubling in some areas. Saudi Arabia is attempting to alleviate the crisis by strengthening its transport networks and diverting cargo to its Red Sea ports. Other Gulf states like the United Arab Emirates and Qatar are better prepared with strategic reserves. Retail chains like Lulu Group International are chartering special flights to bring in fresh produce to avoid passing additional costs to consumers, but there is a tangible risk of a price spiral if the conflict continues.