Ship Recycling Slowing Down as Tensions in the Middle East Prevail in Hellenic Shipping News 12/03/2026 The ship recycling markets have been gearing up for a slowdown, after the outbreak of war in the Middle East. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash buyer of ships, said that “the week saw elevated geopolitical activity in the Middle East, particularly surrounding developments involving Iran. Throughout this period, the UAE has demonstrated strong leadership and resilience, proactively implementing precautionary measures, safeguarding stability, and ensuring uninterrupted safety and confidence for residents and businesses alike”. Source: Best Oasis Best Oasis said that “the Indian ship recycling market is likely to face a significant slowdown following the force majeure advised on natural gas supply for cutting operations. Without adequate gas supply, recycling activities across yards could reduce drastically, impacting overall capacity and processing timelines. Local market participants anticipate that limited cutting capacity may lead to a shortage of available recycling slots, which could support some increase in market pricing sentiment. Additionally, the U.S. dollar has risen drastically, adding further pressure on local buyers and transaction economics. Meanwhile, activity in the Bangladeshi ship recycling market showed signs of improvement this week, with buyers demonstrating clear interest in acquiring available tonnage. Sentiment has strengthened following the arrival of the new government, which is being viewed as more business-friendly. This improving outlook may provide a supportive foundation for the market and increase the likelihood of further recovery in the period ahead”. It added that “the Pakistani ship recycling market remained largely unchanged this week, with minimal activity reported as regional tensions arising from the Iran conflict continued to weigh on sentiment and disrupt trading momentum. As a result, the market was effectively at a standstill for the majority of the week. Nevertheless, limited interest persisted for select units, with indications for workable levels understood to be in the region of USD 410/LDT. Finally, the Turkish ship recycling market remained steady this week, with domestic scrap prices holding unchanged over the period. However, the increasing number of candidate vessels entering the market is expected to place downward pressure on pricing in the near term”, Best Oasis concluded. Source: Intermodal Meanwhile, in a separate report, shipbroker Intermodal said that “developments in the Middle East have weighed on ship recycling markets, amid heightened geopolitical risk and considerations over energy supply shortages. In India, market mood has been impacted by disruptions in Qatari natural gas flows, a key supplier to the country. These developments have raised concerns over potential delays and reduced throughput at Indian ship recycling yards, which could affect yard capacity and scheduling. For now, however, the immediate risk is mitigated by India’s LNG reserves, providing a short-term supply buffer. The segment nevertheless witnessed some activity, with a few low-LDT units reported as incoming tonnage. Local steel prices have also risen sharply, largely driven by the ongoing Middle East conflict. At Gadani, the ship recycling market remained flat last week, with sporadic interest limited to select candidates. Activity appears stalled, tempered