What Happened
Panama’s foreign minister, Javier Martínez-Acha, said the Strait of Hormuz should not be used for geopolitical pressure and urged a permanent arrangement that keeps the waterway open to safe maritime traffic. He voiced support for a durable solution after a temporary truce between the United States and Iran eased tensions in one of the world’s most important shipping lanes.
Martínez-Acha made the remarks in Asunción, Paraguay, where he also warned that conflict in the Middle East is already affecting global energy prices. He said the impact is being felt well beyond the countries directly involved, especially through higher fuel costs in international markets.
Why the Strait of Hormuz Matters
The Strait of Hormuz is a critical chokepoint for global trade and energy supplies. According to the International Maritime Organization, about 13% of chemicals and fertilizers, 9% of new cars, and 20% of the world’s crude oil pass through the strait. Any disruption to that traffic can quickly drive up the price of oil and related products worldwide.
Panama’s top diplomat said the route must remain open to the free and safe passage of all ships. His comments reflected concern that blocking or threatening a key trade corridor can be used as leverage in international disputes, with consequences that spread across markets far from the conflict zone.
Impact on Panama’s Economy
Martínez-Acha said Panama does not face supply shortages of oil or fuels because it imports them from the United States. Even so, he said the country is still exposed to price increases linked to the broader rise in energy costs. To ease that pressure, President José Raúl Mulino’s government launched a partial fuel subsidy program aimed at reducing the burden on consumers.
Panama’s position also reflects its deep connection to global shipping. As a country built around maritime logistics, the Panama Canal, and port activity, Panama has a direct interest in stable international sea lanes and predictable trade flows.
Broader Diplomatic Messages
The foreign minister also highlighted Panama’s growing ties with Mercosur, the South American trade bloc with which Panama has been associated since December 2024. He described the relationship as still early but said Panama offers major advantages through its ports, air connectivity, and the Panama Canal.
During his working visit to Paraguay between Wednesday and Friday, Martínez-Acha said Panama was developing proposals for bilateral cooperation. He pointed to opportunities for Paraguayan investment in Panama and for future collaboration in agriculture and industry, saying the two countries could complement one another through Paraguay’s production capacity and Panama’s connectivity.
Concerns Over Ship Detentions in China
Martínez-Acha also called for respect for Panama’s legal sovereignty amid detentions and inspections of Panamanian-flagged ships in Chinese ports. The issue followed a Supreme Court ruling that annulled the concession granted to a Hong Kong-based company to operate two ports near the Panama Canal.
Panamanian officials have said the increase in inspections and delays in Chinese ports is troubling because it could be interpreted as political pressure. Martínez-Acha said Panama wants a respectful bilateral relationship with China, while making clear that technical and legal criteria should guide port operations and vessel inspections.
The remarks place Panama in the middle of two major global concerns: the stability of strategic shipping routes and the protection of its own maritime registry. As tensions move through trade networks, Panama is signaling that open sea lanes and respect for international rules remain central to its foreign policy.