WS #16233
Data indicates that approximately 40% of non-Iranian Gulf crude is now bypassing the Strait of Hormuz, a significant increase from pre-war levels of 17%, due to ongoing vessel attacks and geopolitical tensions. While total Gulf oil flows remain above pre-war averages, the structural rerouting is driving up shipping insurance and logistics costs. This dynamic creates a divergence in market impact, benefiting energy producers and refiners while pressuring airlines and shipping companies that face higher fuel and transport expenses.
Middle East Oil Rerouting
Data indicates that approximately 40% of non-Iranian Gulf crude is now bypassing the Strait of Hormuz, a significant increase from pre-war levels of 17%, due to ongoing vessel attacks and geopolitical tensions. While total Gulf oil flows remain above pre-war averages, the structural rerouting is driving up shipping insurance and logistics costs. This dynamic creates a divergence in market impact, benefiting energy producers and refiners while pressuring airlines and shipping companies that face higher fuel and transport expenses.