Gulf Oil Shipping Costs to China RiseFivefold
The cost of transporting oil from the Arabian Gulf to China has increased significantly, rising from approximately $45.42 per ton before the US-Iran war to $229.76 in September 2026, an increase of about 406%. This surge threatens the competitiveness of Gulf crude in the Asian market. The rise in costs is putting pressure on oil sellers to lower prices, with Saudi Arabia notably reducing its crude prices and considering offering additional discounts to offset the higher shipping costs. Additionally, the increased expenses may lead Asian importers to shift their purchases to other sources of oil, impacting the global oil market and putting further pressure on producers to cut prices in order to maintain their market share.
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