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Tankers rerouting through Egypt as Hormuz stays shut — long play on Suez Canal traffic surge
With the Strait of Hormuz essentially shut down due to the Iran war, oil tankers are rerouting through Egypt's Suez Canal. Traffic there surged by almost a third in April, driving canal revenue to its highest level since early 2024.
Idea
The closure of the Strait of Hormuz is forcing global oil shipping traffic to reroute through the Suez Canal, driving a massive surge in vessel traffic and revenue for Egypt. As long as the US-Iran conflict keeps the strait blocked, Egypt stands to collect historically high transit fees from these alternative routes. This creates a direct financial windfall that the market has not fully priced into Egyptian assets yet.
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