Shipping through the Panama Canal has increased sharply amid ongoing tensions in the Middle East, particularly surrounding Iran. According to the canal authority’s chief financial officer, Victor Vial, around 300 additional vessels have passed through the canal since October compared with the same period last year. He noted that this trend is expected to continue until the regional situation stabilizes, as reported by Reuters.

The main reason for the surge is the closure of the Strait of Hormuz, prompting commercial ships to use the Panama Canal as an alternative route. In some cases, supply sources have also been shifted to avoid the Iranian coastline. The Associated Press reported that while the average cost of crossing the canal ranges from 300,000 to 400,000 US dollars depending on vessel type, some ships have recently paid up to 425,000 dollars for faster passage.

Analysts believe the increased pressure on this vital trade route is raising both transportation costs and delivery times, potentially affecting the broader global economy.