VIDEO: Iran launches strikes on refineries; CMA CGM halts all freight reservations bound for the Middle East

Major Shipping Lines Halt Middle East Operations Amid Escalating Tensions

On Tuesday, CMA CGM joined other leading container carriers in suspending all cargo shipments to the Middle East, following a series of Iranian attacks that have severely disrupted maritime activity in the Persian Gulf.

Several oil and gas vessels have reportedly suffered damage in the area. Among them, the Athena Nova—a bitumen tanker registered in Honduras and managed from the United Arab Emirates—was struck by two drones while attempting to navigate the strait and began to sink.

The U.S.-flagged tanker Stena Imperative was also damaged during an incident at Bahrain’s port. While the ship’s crew escaped harm, the attack resulted in the death of one shipyard worker and injuries to two others. This vessel is part of the Maritime Administration’s Tanker Security Program, which supports both global trade and U.S. military operations.

In an official statement, CMA CGM announced an immediate halt to all bookings for cargo destined for or departing from Bahrain, Kuwait, Qatar, the United Arab Emirates (excluding Fujairah and Khor Fakkan), Saudi Arabia (excluding Jeddah, King Abdallah Port, Yanbu, and NEOM), and Iraq (specifically the port of Umm Qasr), citing ongoing instability in the region.

Other major shipping companies have also responded to the crisis. Maersk and MSC recently implemented their own operational changes after the United States and Israel launched strikes against Iran over the weekend, with restrictions mainly affecting refrigerated and hazardous cargo. Hapag-Lloyd has stopped all transits through the Strait of Hormuz, while OOCL has instructed its vessels to remain at least 200 nautical miles away from the area.

Maersk has reported that 15 of its services are currently impacted by the conflict.

Further attacks have targeted oil infrastructure in the region. Oil storage facilities in Fujairah, UAE, were hit, causing a fire at the JSW terminal, according to Martin Kelly of EOS Risk Group. In Oman, Salalah port was attacked by unmanned aerial vehicles, and Duqm experienced a second drone strike. Saudi energy giant Aramco has suspended operations at the Ras Tanura refinery, and liquefied natural gas production has ceased at Ras Lafan.

Iran has threatened to block all oil shipments from the Persian Gulf, a vital route for approximately one-fifth of the world’s seaborne oil trade. While Iran exports about 80% of its oil to China, it retains the ability to transport these supplies via pipelines and direct rail links.

Insurance Coverage Under Pressure

The International Group of P&I Clubs, which provides insurance for the vast majority of the world’s shipping fleet, has reportedly seen some members issue 72-hour cancellation notices for war risk policies after reinsurers withdrew their support. This development has led some industry leaders to question the value of maintaining such coverage under current conditions.