The Strait of Hormuz Lost 70% of Shipping Traffic and the Fashion Industry Is Already Paying for It

The U.S.-Israeli military operation launched against Iran on February 28, 2026, has sent an immediate shockwave through the global textile and apparel supply chain, with the Strait of Hormuz, the only maritime exit from the Persian Gulf, now largely closed to commercial shipping. For an industry already navigating tariff pressure and post pandemic overcapacity, the timing adds a new layer of structural risk that will be felt from spinning mills in Bangladesh to high-street shelves in Europe and North America.

The Chokepoint at the Center

The Strait of Hormuz, a 21 mile wide waterway between Iran and Oman, facilitates 11% of global maritime trade volume according to a 2025 UNCTAD report. Within hours of the initial strike, vessel traffic through the strait fell by approximately 70% after Iran’s Islamic Revolutionary Guard Corps warned that passage was “not allowed”. Shipping lines CMA CGM and Hapag-Lloyd have since announced embargoes on Gulf ports, including Jebel Ali, Khalifa, and Dammam.

Synthetic Fibre Costs Under Pressure

Fashion’s shift toward synthetic fibres over the past decade has made the industry structurally dependent on petrochemical derivatives, and therefore on Gulf energy routes. With the Hormuz disruption, polyester feedstock markets, particularly paraxylene (PX) and monoethylene glycol (MEG), have entered a geopolitical risk pricing phase, with cost pressure already transmitting into yarn markets in India. The Bangladesh Garment Manufacturers and Exporters Association has already warned of a “spillover effect” on the ready-made clothing sector should oil prices climb further.

Longer Routes, Higher Costs

With the Hormuz and Bab el Mandeb corridors both classified as high risk, vessels are rerouting around the Cape of Good Hope, adding days or weeks to Asia-Europe transit times. Industry analysts describe this as a “50 day voyage” scenario for some Asia to Europe garment shipments, compared with the standard 25 to 30 days via the Suez Canal. War risk insurance premiums have risen sharply, functioning as what trade specialists call a “hidden tax” built directly into the cost of every container.

Compliance Friction Compounds Losses

The conflict has also introduced new compliance risks. Iranian fiber and carpet exports have effectively disappeared from global trade flows, tightening certain specialty raw material markets. Meanwhile, U.S. customs intensified origin audits on goods using Chinese yarn or fabric processed through Vietnam or Cambodia, adding demurrage and inspection costs at West Coast ports. In an industry running on tight delivery calendars, even a three day customs delay can erase profitability on a single order.

What Comes Next

The crisis puts brands in a position they have been in before, most recently during the 2021 Red Sea disruptions, but with compounding geopolitical variables this time. Short term, most sourcing teams are assessing rerouting options and negotiating force majeure clauses with suppliers. Longer term, the disruption adds pressure to diversify sourcing closer to consumption markets and reduce oil related input exposure, a structural shift that the industry has discussed since the cotton price crisis of the early 2010s, but has been slow to execute.