Suez Canal Gains Oil Tanker Traffic Boost as Hormuz Disruptions Redirect Energy Routes

The Suez Canal has seen renewed momentum in oil tanker traffic as disruptions in the Strait of Hormuz pushed energy shipments toward alternative routes through the Red Sea and the Egyptian waterway.

The number of oil tankers passing through the Suez Canal rose by around 28% year-on-year in April 2026, reaching 529 tankers, according to data from Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS).

Overall maritime traffic also improved, with 1,182 vessels of various types crossing the canal in April, up 14% compared with April 2025.

The increase comes after years of pressure on Suez Canal traffic following attacks by Yemen’s Houthi movement on vessels in the southern Red Sea, which caused many ships to avoid the route.

The latest regional tensions and the effective closure of the Strait of Hormuz, a key energy chokepoint through which a significant share of global oil and LNG shipments normally passes, have encouraged some energy flows to seek alternative paths.

Saudi Arabia, the world’s largest oil exporter, has activated alternative export routes, including transporting crude through pipelines to the Red Sea port of Yanbu for overseas shipment.

While many vessels have moved south through Yemen and the Bab el-Mandeb Strait, some shipping activity appears to have shifted north through Egypt and the Suez Canal.

Other Gulf countries have also relied on Saudi ports, including Jeddah, and overland routes across the Arabian Peninsula to maintain supply chains.

Mohamed Abu Basha, Head of Macroeconomic Analysis at EFG Hermes, said the Suez Canal has become an “unexpected net beneficiary” from the latest regional developments.

Suez Canal revenues reached $419 million in April, an increase of 27% year-on-year, marking the highest monthly level since early 2024.

Despite the recent improvement, canal traffic and revenues remain below pre-disruption levels. Egypt estimates that disruptions have cost the canal at least $9 billion in potential revenues.

In April 2023, around 2,300 vessels crossed the canal, significantly higher than recent figures.

The Suez Canal remains one of Egypt’s most important sources of foreign currency, alongside tourism and remittances from Egyptians abroad.

Abu Basha said a full recovery in canal revenues to historical levels could represent a major positive development for Egypt’s economy and potentially reduce the country’s current account deficit by 25% to 30%.

However, he noted that the outlook depends heavily on future geopolitical developments and whether regional tensions continue to affect global shipping routes.