---
title: Aramco just revealed the hidden cost of avoiding Hormuz
description: "Saudi Aramco has built an alternative route that bypasses both the Strait of Hormuz and the Red Sea.\n\nOil moves from Yanbu to Ain Sokhna, through the SUMED pipeline, exits via Sidi Kerir, and then sails around the Cape of Good Hope to reach Asia.\n\nThe catch?\n\nThat \"safer\" route now costs about $5 per barrel more once freight, insurance, and pipeline fees are included.\n\nOn a typical cargo, that's roughly $10 million in additional costs.\n\nThe impact is now so significant that Aramco is developing a separate pricing formula for these shipments because its standard Asia Official Selling Price (OSP) no longer reflects the true economics.\n\nThe key takeaway:\n\nThe market has been treating alternative routes as a free solution.\n\nThey never were.\n\nThose costs are now becoming visible, and they're another reason why the true cost of oil is moving higher, even when headline crude prices don't fully reflect it.\n\nSource: Jack Prandelli on X"
---

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# [Aramco just revealed the hidden cost of avoiding Hormuz](https://blog.syzgroup.com/syz-the-moment/aramco-just-revealed-the-hidden-cost-of-avoiding-hormuz)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jul 28, 2026, 3:19:57 PM

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