Middle East Crisis Disrupts Europe's Drug Supply via Strait of Hormuz Blockade

Rising tensions in the Middle East are now threatening Europe's drug supplies, the German Pharmaceutical Industry Association (BPI) has warned. The blockade of the Strait of Hormuz, triggered by Iran in late February 2026, has disrupted a key shipping route for pharmaceuticals. As a result, maritime transport costs have surged, forcing companies to seek longer and more expensive alternatives.

The crisis began on 28 February 2026, when Iran blocked the Strait of Hormuz in response to US-Israeli strikes. Maritime insurance premiums in the Persian Gulf immediately jumped by 50%, with major insurers cancelling war risk coverage from 5 March. This de facto closure has forced shipping firms to reroute vessels, driving up global freight costs—including those for pharmaceutical goods moving between Asia and Europe.

Europe's reliance on Asian supply chains, particularly China, has made the situation more urgent. The BPI has stressed that secure maritime routes are vital for drug imports, as delays and higher costs now risk shortages. In response, the association has proposed a ten-point plan to strengthen supply resilience and reduce dependence on Asia.

The BPI also sees Germany's upcoming Health Security Act (GeSiG) as a chance to improve crisis readiness. Key measures include better digitalisation for pandemic responses and stronger defences against antimicrobial resistance (AMR). Beyond this, the association calls for closer alignment between health and industrial policies, ensuring pharmaceuticals remain a priority sector.

To tackle long-term risks, the BPI urges Germany to take a leading role in EU and NATO frameworks. This would involve coordinating medical logistics and industrial health policies during crises, ensuring Europe's healthcare system can function independently when global trade falters.

The Strait of Hormuz blockade has exposed vulnerabilities in Europe's drug supply chains, with higher costs and delays now affecting pharmaceutical imports. The BPI's ten-point plan and the proposed Health Security Act aim to reduce reliance on Asia while improving crisis preparedness. Without action, further disruptions could strain healthcare systems across the continent.