Bloomberg Surveillance · Wednesday, September 30, 2026
Concerns about shipping costs and security in the Strait of Hormuz are leading to discussions about alternative arrangements and the reliability of oil flows. The U.S. military presence is noted as a significant expense, prompting consideration of more cost-effective solutions.
“The numbers clearly show the blockade is working. The question is whether it can continue to work.”
“And I think the question is whether a different arrangement might just be a lot more convenient. I mean, if we were spending $ 40 a barrel to try to get oil moving in the Strait of Hormuz, could we find consensus around some other arrangement that brings down those costs dramatically, maybe not to zero like it was before, but maybe just to a few dollars.”
“So it makes it hard for Saudi Arabia to use that route for Asia. And if you have to go around the Mediterranean and Cape in South Africa, you're adding 20 days to your trip.”