The continuing United States and Israel-led campaign against Iran and the blockade of the Strait of Hormuz have created numerous difficulties for companies both directly and indirectly. Those businesses that source goods from the region have seen shipments slowed down to a trickle as missile attacks, the U.S. blockade, and Iran’s efforts to prevent passage have taken their toll on the flow of traffic along one of the world’s most important maritime routes. Meanwhile, European companies generally are contending with associated hikes in oil and energy prices and—depending on which country they’re based in—stagflation.
In order to keep their businesses afloat, many companies have switched suppliers and sourced from elsewhere, which means compliance functions are busy navigating how to maintain appropriate due diligence while rules face being rewritten and/or more stringently enforced.
