Pirates return as Iran war reroutes shipping
Somali pirates are hijacking ships again as the Iran war forces commercial vessels to detour around Africa, adding cost and risk for global shipping.
- Ships are avoiding the Strait of Hormuz because of the Iran conflict, taking longer routes that add weeks and about $1 million per trip in fuel and insurance.
- The detour pushes traffic into waters off Somalia, where pirates have already seized at least three vessels including two oil tankers in recent weeks.
- Somali piracy peaked in 2011 with 237 attacks costing the global economy $7 billion, and experts fear that pattern is coming back.
- A US push to reopen the strait, called Project Freedom, collapsed after warships were hit and turned back, a public embarrassment.
- Trump said the US entered the war for Israel, while American gas prices rise, service members have died, and munitions stockpiles are being drained.
Outlook: Shipping costs and gas prices are likely to keep climbing, and oil companies and Israel will probably ask Washington for bailouts once the war winds down.