Saudi Arabia Bypasses "Two Straits" to Export Crude Oil, Shipping Time Increases by One Month

Golden Finance reported on July 24, citing CCTV, that due to disruptions in shipping caused by Middle Eastern conflicts in the two major international energy transport routes—the Strait of Hormuz and the Bab el-Mandeb Strait—oil-producing giant Saudi Arabia is currently forced to reroute its crude oil exports via the Suez Canal in Egypt, bypassing Africa. The detour will increase shipping time by approximately one month and double transportation costs. According to data from international market service provider Kpler and the London Stock Exchange Group's shipping research company, an oil tanker traveling from Saudi Arabia's western Red Sea port of Yanbu through the Bab el-Mandeb Strait to Asia typically takes only 19 days. However, the route via the Suez Canal, the Mediterranean Sea, the Strait of Gibraltar, and around Africa's Cape of Good Hope to Asia requires 48 days. Calculations show that fuel costs for the detour alone increase from $1.26 million to approximately $2.87 million, with an additional $1 million required for the Suez Canal transit fee.