China's Oil Shippers Avoid Key Middle East Routes Amid Conflict

Aug 18, 2026

58 min

Aug 18, 2026 22:30

China’s largest oil shippers abandon Hormuz, Bab al-Mandab as Middle East conflict deepens

## Shift in Shipping Routes

China's major oil shipping companies, COSCO Shipping Energy Transportation and China Merchants Energy Shipping, have ceased using the Strait of Hormuz and Bab al-Mandab due to escalating tensions in the Middle East. These routes are crucial for global oil transport, but the ongoing conflict involving Iran has made them too risky.

## Alternative Strategies

To maintain oil supplies, these companies are now opting for ship-to-ship transfers off the coasts of the UAE and Oman. This decision follows guidance from Chinese authorities and reflects a broader trend among Asian operators to choose safer, albeit more costly, routes.

## Impact on Global Trade

The rerouting is part of a larger shift in global energy trade, with increased use of alternative paths like Saudi Arabia's Red Sea terminals and Oman's Duqm port. Additionally, China's "Ice Silk Road" through Russia's Arctic offers a new, albeit seasonal, route to Europe, bypassing traditional chokepoints.

## Strategic Implications

These changes highlight China's focus on securing its oil imports while avoiding conflict zones. The new Arctic route, though small in scale, represents a strategic move to diversify shipping lanes and reduce dependency on vulnerable passages.

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