$20 million: The cost of shipping oil through Strait of Hormuz, TotalEnergies CEO says
- Posted on August 24, 2026
- By Business News Today
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- 1 min read
The Strait of Hormuz represents a critical chokepoint in global energy logistics, with shipping costs reaching $20 million per cargo according to TotalEnergies leadership. This substantial transportation expense significantly impacts oil pricing dynamics and creates lucrative opportunities for maritime traders. Recent geopolitical tensions have forced producers to discount crude offerings to maintain market competitiveness, while consistent shipments through the passage keep global crude prices stabilized below $100 per barrel. However, downstream fuel markets experience tightness, directly influencing consumer gasoline and diesel costs.
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