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Global Supply Chains: Navigating the Strait of Hormuz

Explore the topic of global supply chains through current news. The Strait of Hormuz is a very important shipping route for global trade.

The Strait of Hormuz is a very important shipping route for global trade. Recently, a French-owned container ship successfully passed through it. This was the first time a major Western European company's ship used the strait since a conflict began over a month ago. The conflict, involving the US, Israel, and Iran, has made the waterway dangerous, and several ships have been attacked. Because of this, normal shipping activity has almost stopped, leaving many vessels stuck. About a fifth of the world's oil and natural gas travels through this strait, so the slowdown has caused oil prices to rise sharply. This has led to higher fuel costs and worries about inflation around the world. Although traffic is much lower than before, some ships, including those linked to Iran, Pakistan, and India, are still using the strait.


Key Vocabulary

Strait

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Vital

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Firm

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Waterway

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Halted

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Stranded

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Skyrocketing

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Inflation

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Traffic

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Maritime

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True or False?

The French-owned ship was the first vessel of any kind to pass through the Strait of Hormuz since the conflict began.

Iran has stated that only military vessels are allowed to use the Strait of Hormuz during the ongoing conflict.

The slowdown in traffic through the Strait of Hormuz has contributed to higher fuel prices globally.

US President Donald Trump has offered to provide assistance to allies to help reopen the Strait of Hormuz.

According to the article, all shipping through the Strait of Hormuz has completely stopped since the conflict began.

The Japanese shipping giant MOL confirmed that a Japanese ship carrying natural gas successfully exited the Strait of Hormuz.


Comprehension

What type of ship was the first Western European vessel to pass through the Strait of Hormuz after the conflict began?

What percentage has shipping traffic through the Strait of Hormuz decreased compared to before the conflict?

Why did the article mention that some ships hugged "unusually close" to the coast of Oman?

What is the main reason for the global oil price increase mentioned in the article?

How significant is the Strait of Hormuz for global energy supply, based on the article?



Synonym Match

Match each word with its synonym.


Collocations

Match each phrase with its meaning.


Vocabulary Practice

The new bridge will shorten the travel time, making it a truly   route for commuters.

Due to the severe storm, all flights were   at the airport for several hours.

Our legal   advised us on the best way to protect our intellectual property.

The unexpected increase in raw material costs led to   production expenses.

The government's new policy aims to control   and stabilize the economy.

After the mechanical failure, the cargo ship was   in the middle of the ocean for days.


Ticket to Class

The article discusses how geopolitical conflicts can disrupt global supply chains. How might your company or industry be affected by similar disruptions in key transport routes or resource availability?

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Discussion

  1. The article discusses how geopolitical conflicts can disrupt global supply chains. How might your company or industry be affected by similar disruptions in key transport routes or resource availability?
  2. The article mentions rising oil prices and fears of inflation. How do these broader economic impacts affect business decisions in your sector, for example, regarding pricing, investment, or operational costs?
  3. The article highlights the importance of ensuring the safety of crew, cargo, and vessels. What measures does your company or industry take to manage risks related to safety, security, or unexpected events in its operations or supply chain?