Gartner Says Supply Chain Leaders Must Address Three Priorities Amid Impacts From Israel-Iran Conflict
In response to the ongoing impacts from the conflict, CSCOs should:
- Assess and mitigate their exposure to new global transportation bottlenecks
- Prepare CFOs for continued supply chain cost volatility
- Review supply chain resilience strategies
“As the conflict between Israel and Iran oscillates, CSCOs must leverage the resilience they have built in recent years, recognizing that the global significance of this region makes it nearly impossible to avoid adverse impacts, even if only indirect,” said David Gonzalez, VP analyst in Gartner’s Supply Chain practice.
Mitigate Regional Bottlenecks
- Red Sea and Suez Canal: Container traffic remains well below pre-crisis levels, with major shipping lines avoiding the Suez Canal. Organizations must monitor transit times and adjust expectations for longer lead times and higher costs.
- Strait of Hormuz: Heightened risk of disruption is causing delays and congestion as companies seek alternative routes. Supply chain leaders should engage partners to identify and manage new shipping options.
- Regional Ports: High-volume ports such as Jebel Ali, Khalifa Port, Dammam and Haifa face increased pressure, with some having already faced service interruptions. Contingency planning for alternative ports is essential.
- Eurasian Rail Freight: Demand for rail freight between Asia and Europe has surged, leading to congestion and longer booking times. Organizations should trial rail options where feasible, weighing higher costs against faster transit.
Figure 1: Global Supply Chain Vulnerability
Source: Gartner (June 2025)
Prepare CFOs for Cost Volatility
Underinvestment in supply chain technology has left many organizations exposed, making it critical to build the business case for new tools that enhance visibility and risk management. In this environment, close collaboration between supply chain leaders and CFOs is essential to navigate ongoing volatility and protect customer service levels.
Review Supply Chain Resilience Strategies
Gonzalez noted that while many supply chain leaders have already invested in collaborative supplier relationships and risk mitigation, ongoing trade disruptions and regional tensions require a renewed focus. CSCOs should reassess existing supplier networks, confirm the viability of current mitigation plans, and address any overreliance on specific geographies to reduce exposure and ensure business continuity.
