The cost of shipping crude oil has risen sharply due to heightened military tensions and increased risks for tanker operations in the Middle East. According to a report by the International Energy Agency, the cost of transporting crude oil from the Persian Gulf to Asia has surpassed $37 per barrel by mid-October 2026; a figure that is estimated to be more than five times the pre-war level.
Oil Transportation Rates from Other Destinations
The increase in shipping costs is not limited to the Persian Gulf routes. The transportation rates for oil from the United States to Asia have also seen significant growth, with shipping costs taking a larger share of the final price of delivered oil. A comparison of maritime routes shows that shipping costs vary significantly depending on the origin, destination, type of tanker, and operational conditions.
Read more: Increase in Oil Transportation Costs to $40 per Barrel
Factors Affecting Oil Transportation Costs
The Strait of Hormuz is one of the strategic routes for global energy trade, and increased security risks in this area can raise the cost and time of oil transport. According to an analysis by the International Energy Agency, congestion of tankers, changes in trade flow routes, cargo transfers between ships, and reduced fleet efficiency have contributed to the rise in shipping rates. These conditions result in ships spending more time moving cargo and having less capacity for new trips.
At the same time, increased security risks can also raise insurance costs and war risk premiums. According to a Reuters report on October 15, 2026, the cost of transporting a planned shipment of about 2 million barrels of crude oil from the United States to Japan for a scheduled trip in late November has reached $81 million. This route averaged $9.1 million in costs last year, which, when dividing the total trip cost by the shipment volume, results in a shipping cost of $40.50 per barrel; a figure that is nearly nine times the average of the previous year.
The increase in tanker rates raises the cost of delivering crude oil to refineries and can reduce processing profit margins. This is particularly significant for Asian refineries that are more dependent on Middle Eastern oil. According to the International Energy Agency, the rise in shipping costs and the price of delivered oil in September has put considerable pressure on the profit margins of some Asian refineries.
The continuation of this situation could have several consequences, including that the extent to which shipping costs are passed on to the final fuel price depends on factors such as crude oil prices, refining capacity, product inventories, market demand, and pricing policies. The use of alternative sources, smaller tankers, long-term shipping contracts, and purchasing oil with delivery at the destination are among the options buyers are considering to manage costs.
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