Oil tanker traffic through the Suez Canal surged nearly 30% in April 2024, the latest sign that the crisis in the Hormuz Strait is redrawing the map of global energy shipping.
Why the rerouting
The increase comes as shippers avoid the Strait of Hormuz, a narrow waterway between Iran and the Arabian Peninsula that handles about a fifth of the world's oil. Tensions there have forced tankers to find alternative routes — and the Suez Canal is a primary alternative for vessels heading from the Persian Gulf to Europe or North America.
Data shows Suez Canal oil tanker crossings rose by nearly 30% in April compared to previous months. While the Suez Canal Authority has not released official monthly figures, the trend is clear from shipping intelligence.
Why shippers are choosing the Suez route
The Suez Canal offers the shortest sea link between the Indian Ocean and the Mediterranean. For oil tankers that would normally pass through the Hormuz Strait and then around the Arabian Peninsula, the canal provides a direct line to European ports — but only if they can get there safely. The Hormuz crisis has made the strait risky, so tankers are sailing the long way around Africa or, for those headed west, through the Suez. The nearly 30% jump in crossings suggests many are choosing the canal.
Ripple effects on global oil supply
The rerouting has consequences. Longer voyages mean higher fuel costs and delayed deliveries. The Suez Canal itself may see increased congestion, though the canal has capacity. For oil markets, the shift could tighten supply in regions that depend on Hormuz oil, at least temporarily.
What happens next
The duration of the Hormuz crisis is unknown. If it continues, the Suez Canal is likely to see sustained high traffic. That could alter shipping patterns permanently, with some tankers perhaps investing in different routes. For now, the April data shows a clear pivot, and industry watchers will be watching the May numbers closely. No official projections have been released for the coming months.
