With the Strait of Hormuz effectively closed since late February following the outbreak of conflict between Iran and the U.S. and Israel, approximately 16.7 million barrels of crude daily have been diverted through alternative shipping routes. This rerouting has shifted attention to five other critical maritime chokepoints, each facing distinct pressures that threaten global oil logistics.
Saudi Arabia redirected its exports westward through the East-West pipeline to the Red Sea port of Yanbu, dramatically increasing throughput through the Bab el-Mandeb strait from 4.2 million barrels daily in the first half of 2025 to 8.1 million in the second quarter of 2026. However, the Houthis declared a maritime blockade of Saudi Arabia on July 20, selectively targeting certain vessels based on crew and ownership rather than cargo. Ships avoiding the strait now face a 3,500-nautical-mile detour around the Cape of Good Hope, adding 10 to 14 days and approximately $2.6 million per cargo in extra costs. Alternative routes through Suez and the Sumed pipeline remain constrained by capacity and expense.
The Turkish Straits, including the Bosphorus and Dardanelles, remained open during the period but face downstream disruptions. Ukrainian drone operations have disabled major Russian export terminals at Novorossiysk, including the Sheskharis facility, while also striking vessels loading at Caspian Pipeline Consortium terminals. Turkey began quietly restricting transit permits for vessels bound for affected Russian ports in early August, a measure permissible under the 1936 Montreux Convention. Russian Black Sea exports lack viable alternative routes, underscoring why Turkey has pursued the proposed $25 billion Canal Istanbul project.
The Panama Canal, dependent on rainfall to maintain freshwater levels in Gatun Lake, has faced constraints due to insufficient precipitation. The authority has required ships to ride higher in the water, effectively limiting cargo capacity. Brent crude traded around $91.62 and West Texas Intermediate around $85.56 on the publication date, with a portion of the premium reflecting detour costs across the global network.
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