air-cargo

Air Cargo Sector Cautiously Eyes Middle East Reopening After US-Iran Framework

A tentative peace framework between the US and Iran is expected to restore critical shipping corridors, but the air cargo industry remains measured about near-term recovery. The agreement, set for signing in Geneva on Friday, should enable the Strait of Hormuz to reopen following its closure in February—an essential oil transport route. The closure massively pushed up jet fuel prices, which contributed to rising costs of living and added pressure on consumer spending. Fighting prompted supply chains to shift away from the Middle East, though operations have begun returning since airspace reopened. Airfreight capacity between the Middle East and Europe currently sits 20% below year-ago levels, while Asia-Middle East routes show a 4% decline. The US Airforwarders Association cautiously welcomed the framework but emphasized significant details remain unclear. Industry representatives stressed the need for certainty on how the strait will reopen and how free passage will be enforced. The AfA noted that forwarders need clarity, stability, and predictable trade policy after sustained disruption from government shutdowns, tariffs, and Middle East conflict. Shipping companies signal they will await formal agreement completion and mine removal before scaling operations, though US President Donald Trump claimed on social media that oil tankers are already moving out of the strait.