Insight
Iran and the Strait of Hormuz: The impact of the Middle Eastern conflict on iron ore
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The closure of the Strait of Hormuz following unprecedented US–Israel strikes on Iran has triggered the most disruptive shock to Middle Eastern iron ore and DRI supply chains in over a decade. With more than 3,000 vessels halted and insurers withdrawing coverage, transit through the Strait effectively collapsed overnight—cutting off a key source of high‑grade feedstock for regional DRI hubs. Power instability, disrupted logistics, and soaring freight and war‑risk costs now threaten Iran’s mine output, seaborne trade, and the continued operation of GCC DRI plants. The conflict has exposed the vulnerability of DRI supply chains in the region as these gain greater prominence with steelmaking's green transition.
Table of contents
- What happened
- Why the conflict matters for iron ore and steel
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Iranian exports, and why they are now collapsing
- Pellet and concentrate markets under pressure
- Regional DRI and steel implications
- What are the immediate implications for the iron ore market?
- Medium‑term risks to the iron ore and steel outlook
Tables and charts
This report includes the following images and tables:
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Iran crude steel production and capacityMiddle Eastern steel and DRI productionIran iron ore production and exportsMiddle Eastern iron ore production and exportsMiddle Eastern (ME) pellet shares
What's included
This report contains:
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