Shipping Corporation of India, GE Shipping: Shipping stocks in focus amid Iran conflict; what you need to know

The strikes led to the killing of Iran's Supreme Leader Ayatollah Ali Khamenei, escalating geopolitical tensions and deepening global economic uncertainty.

Recent reports indicate that military strikes by the United States and Israel on Iran have continued unabated, with Tehran retaliating through missile barrages across the region, raising fears of a wider conflict that could draw in neighbouring countries.

US President Donald Trump told The Daily Mail that the confrontation could stretch on for another four weeks and that operations would persist until American objectives are achieved.

Attention has now turned to the Strait of Hormuz, a crucial artery through which roughly one-fifth of global seaborne oil trade and about 20% of liquefied natural gas supplies pass. Although the waterway has not been formally closed, marine tracking data show tankers accumulating on both sides of the strait amid security concerns and potential insurance constraints.

“The most immediate and concrete impact on oil markets is the near standstill in traffic through the Strait of Hormuz, effectively preventing around 15 million barrels per day of crude oil from reaching global markets,” said Jorge Leon, head of geopolitical analysis at Rystad Energy.

Impact on shipping stocks in India

A disruption in the Strait of Hormuz can lead to a sharp spike in freight rates because it directly affects one of the world’s busiest energy shipping routes.

The Strait of Hormuz handles nearly 20% of global oil trade. If tensions escalate or the waterway faces blockades, attacks, or restrictions, oil tankers may either be delayed, face higher insurance premiums, or be forced to reroute via longer paths — such as around the Cape of Good Hope in Africa. These longer routes increase voyage time, fuel consumption, and vessel availability constraints.

At the same time, analysts explain that war-risk insurance premiums surge for ships operating in conflict-prone zones. With higher operational costs and fewer available vessels (as ships take longer to complete each trip), charter rates rise sharply. This leads to higher freight rates for crude oil, LNG, and even container shipments in the region.

Hence, a rise in freight rates will be positive for companies such as Shipping Corporation of India (SCI) and GE Shipping.