The escalating security crisis around two of the world's most important maritime chokepoints is dramatically increasing the cost of moving oil, forcing tankers to sail thousands of extra miles, adding weeks to delivery times and millions of dollars in extra costs.
According to a Reuters analysis, the combined disruption of the Strait of Hormuz and the Bab el-Mandeb is forcing some shipments to take a circuitous route around Africa's Cape of Good Hope, extending voyages by nearly a month and increasing transportation costs by roughly $2.5 million per tanker.
