Auction prices for Panama Canal transit slots surged in August, with the average at the canal’s main locks reaching $1.1 million, more than 16 times the level a year earlier, while slots for locks that accommodate large vessels climbed to a record $2.5 million. Higher bids followed a jump in canal demand after the war shut the Strait of Hormuz, even as El Niño (Pacific warming pattern) worsened drought conditions, lowered water levels at Gatun Lake, and constrained cargo volumes and vessel traffic. The Panama Canal Authority said the auction prices reflect temporary market volatility rather than official tolls and warned that additional restrictions could be imposed depending on conditions.