Record Freight Costs Squeeze US Crude Sales to Asia Amid Strait of Hormuz Disruptions

Freight costs for shipping US crude oil to Asia have surged to record levels due to ongoing disruptions to Middle East supply routes.

The closure of Saudi Arabia's East-West pipeline earlier this month, which was attacked from Iraq, has heightened concerns about alternative export routes and left Asian buyers more reliant on non-Gulf barrels.

Despite the higher shipping costs, Asian refiners are continuing to charter tankers for US crude, seeking to cover supply that would otherwise have come from the Gulf.