Panama Canal Emerges as Key Trade Lifeline Amid U.S.-Iran War

Source: International Business Times

Cargo ships wait to transit the Panama Canal in Panama City on April 26, 2026. 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.