CMA CGM San Antonio Missile Strike: Vessel Damage, Likely Scrapping, and the New Risk Reality for Strait of Hormuz Shipping

The CMA CGM San Antonio, a 2,824 TEU Maltese-flagged container ship operated by French shipping giant CMA CGM, was struck by an Iranian missile while transiting the Strait of Hormuz on May 5, 2026 . The attack caused significant structural damage, injured eight crew members, and set off a chain of events that underscores how the broader Strait of Hormuz crisis is reshaping the economics of global shipping.

Damage and Casualties

The missile strike severely damaged the vessel. CMA CGM Chairman and CEO Rodolphe Saadé stated on July 3, 2026, that the ship is "so badly damaged" that the company is actively considering sending it for scrapping rather than attempting repairs . The ship is one of dozens of vessels struck since the onset of the Iran conflict .

Eight crew members were wounded in the attack, the largest number of seafarer injuries reported in a single incident since the conflict began . Two of the injured seafarers, both Filipino nationals, were later repatriated home . The crew were evacuated from the vessel after the strike for medical care .

US officials, citing American intelligence, indicated the weapon used was likely a cruise missile . The vessel had turned off its AIS transponder before commencing the transit through the strait, a common security measure in high-risk zones .

Likely Fate of the Vessel: Scrapping

As of July 2026, CMA CGM is leaning toward scrapping the San Antonio. Saadé told a business conference in southern France that the damage appears beyond economical repair for a vessel of its size and age . A final decision has not been formally announced, but scrapping is described as the likely outcome .

Broader Implications: Insurance, Security, and Trade

The attack on the San Antonio did not occur in isolation. It is a focal point in a much larger crisis that has fundamentally altered the risk calculus for the Strait of Hormuz, through which roughly 20% of global oil supplies pass daily .

Insurance costs have skyrocketed. War risk premiums for a single transit have surged from roughly 0.001% of vessel value before the crisis to as much as 4% for a seven-day policy—a 4,000-fold increase . This has made the Strait of Hormuz the most expensive waterway in the world to insure . Major maritime insurers, including P&I clubs like Gard, Skuld, and NorthStandard, canceled war risk coverage for the Gulf in early March 2026, forcing governments to step in as insurers of last resort . By late June, insurance exposures in the region had reached approximately $352 billion, prompting international intervention with more than $40 billion in additional capacity .

The US-led security corridor was paused. The attack on the San Antonio came just two days after the launch of "Project Freedom," a US-led maritime security corridor intended to provide a security umbrella for merchant ships transiting the strait . Shortly after the missile strike, President Donald Trump announced a temporary "pause" of the program, raising questions about the viability of escorted transits under active threat .

Rerouting and trade disruption. The cumulative effect of missile strikes, mine threats, naval deployments, and prohibitive insurance costs has drastically reduced commercial traffic through the strait . Ships are increasingly diverting around the Cape of Good Hope or seeking alternative routes, adding weeks of transit time and an estimated $2–3 million in extra voyage costs for a standard 8,000 TEU container ship .

Global economic impact. The crisis has turned the Strait of Hormuz from a critical trade artery into a major financial pressure point. A complete closure of the strait, removing close to 20% of global oil supplies from the market, could raise the average West Texas Intermediate (WTI) oil price to $98 per barrel and lower global real GDP growth by an annualized 2.9 percentage points in the second quarter of 2026, according to a model from the Federal Reserve Bank of Dallas . War risk alone is estimated to be adding tens of billions of dollars in annual costs to global trade .