Red Sea Shipping Reroutes Continue to Strain Global Trade

Despite the Houthi pause in Red Sea attacks, major shipping companies continue routing vessels around the Cape of Good Hope rather than through the Suez Canal, adding 11,000 nautical miles and approximately $1 million in fuel costs per voyage. Insurance premiums for Red Sea transit remain at war-risk levels. The disruption compounds Iran's import difficulties, as sanctioned goods must navigate both financial restrictions and physical route changes to reach Iranian ports.